Correlation Between SPDR Portfolio and Global X
Can any of the company-specific risk be diversified away by investing in both SPDR Portfolio and Global X at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SPDR Portfolio and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Portfolio Emerging and Global X, you can compare the effects of market volatilities on SPDR Portfolio and Global X and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SPDR Portfolio with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Global X.
Diversification Opportunities for SPDR Portfolio and Global X
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and Global is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio Emerging and Global X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X and SPDR Portfolio is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SPDR Portfolio Emerging are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Global X go up and down completely randomly.
Pair Corralation between SPDR Portfolio and Global X
If you would invest 1,911 in Global X on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Global X or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SPDR Portfolio Emerging vs. Global X
Performance |
| Timeline |
| SPDR Portfolio Emerging |
| Global X |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SPDR Portfolio and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Portfolio and Global X
The main advantage of trading using opposite SPDR Portfolio and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio position performs unexpectedly, Global X can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Global X will offset losses from the drop in Global X's long position.| SPDR Portfolio vs. Xtrackers MSCI Emerging | SPDR Portfolio vs. FlexShares Morningstar Emerging | SPDR Portfolio vs. First Trust Emerging |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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