Correlation Between IShares Core and Global X
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By analyzing existing cross correlation between iShares Core SP and Global X SP, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Global X.
Diversification Opportunities for IShares Core and Global X
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Global is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP and IShares Core 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 iShares Core SP 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 SP has no effect on the direction of IShares Core i.e., IShares Core and Global X go up and down completely randomly.
Pair Corralation between IShares Core and Global X
Assuming the 90 days trading horizon iShares Core SP is expected to generate 1.6 times more return on investment than Global X. However, IShares Core is 1.6 times more volatile than Global X SP. It trades about 0.13 of its potential returns per unit of risk. Global X SP is currently generating about 0.12 per unit of risk. If you would invest 41,763 in iShares Core SP on September 12, 2024 and sell it today you would earn a total of 18,967 from holding iShares Core SP or generate 45.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
iShares Core SP vs. Global X SP
Performance |
| Timeline |
| iShares Core SP |
| Global X SP |
IShares Core and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Global X
The main advantage of trading using opposite IShares Core and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Govt Bond | IShares Core vs. iShares Global AAA AA | IShares Core vs. iShares Smart City | IShares Core vs. iShares Broad High |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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