Correlation Between Xtrackers and Global X
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By analyzing existing cross correlation between Xtrackers II and Global X SP, 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
Pay attention - limited upside
The 3 months correlation between Xtrackers and Global is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II 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 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 II 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 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 II is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 1.56 times less risky than Global X. The etf trades about -0.01 of its potential returns per unit of risk. The Global X SP is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 1,761 in Global X SP on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Global X SP or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Xtrackers II vs. Global X SP
Performance |
| Timeline |
| Xtrackers II |
| Global X SP |
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. UBS Fund Solutions | Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC | Xtrackers vs. SPDR Gold Shares |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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