Correlation Between Xtrackers and Global X
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By analyzing existing cross correlation between Xtrackers SP 500 and Global X Bitcoin, you can compare the effects of market volatilities on Xtrackers 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 with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Global X.
Diversification Opportunities for Xtrackers and Global X
Very weak diversification
The 3 months correlation between Xtrackers and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers SP 500 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 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 SP 500 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 i.e., Xtrackers and Global X go up and down completely randomly.
Pair Corralation between Xtrackers and Global X
Assuming the 90 days trading horizon Xtrackers is expected to generate 4.04 times less return on investment than Global X. But when comparing it to its historical volatility, Xtrackers SP 500 is 4.14 times less risky than Global X. It trades about 0.12 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 | 100.0% |
| Values | Daily Returns |
Xtrackers SP 500 vs. Global X Bitcoin
Performance |
| Timeline |
| Xtrackers SP 500 |
| Global X Bitcoin |
Xtrackers and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Global X
The main advantage of trading using opposite Xtrackers and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers 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 vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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