Correlation Between Xtrackers MSCI and Global X
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By analyzing existing cross correlation between Xtrackers MSCI World and Global X Bitcoin, you can compare the effects of market volatilities on Xtrackers MSCI 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 Xtrackers MSCI with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Global X.
Diversification Opportunities for Xtrackers MSCI and Global X
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xtrackers and Global is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI World and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and Xtrackers MSCI 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 Xtrackers MSCI World 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 Bitcoin has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and Global X go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Global X
Assuming the 90 days trading horizon Xtrackers MSCI is expected to generate 4.49 times less return on investment than Global X. But when comparing it to its historical volatility, Xtrackers MSCI World is 4.38 times less risky than Global X. It trades about 0.11 of its potential returns per unit of risk. Global X Bitcoin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.61% |
| Values | Daily Returns |
Xtrackers MSCI World vs. Global X Bitcoin
Performance |
| Timeline |
| Xtrackers MSCI World |
| Global X Bitcoin |
Xtrackers MSCI and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Global X
The main advantage of trading using opposite Xtrackers MSCI and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI 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.| Xtrackers MSCI vs. Xtrackers II Global | Xtrackers MSCI vs. Xtrackers FTSE | Xtrackers MSCI vs. Xtrackers SP 500 | Xtrackers MSCI vs. Xtrackers MSCI |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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