Correlation Between IPath Series and Global X
Can any of the company-specific risk be diversified away by investing in both IPath Series 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 IPath Series and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPath Series B and Global X, you can compare the effects of market volatilities on IPath Series 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 IPath Series with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPath Series and Global X.
Diversification Opportunities for IPath Series and Global X
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPath and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iPath Series B and Global X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X and IPath Series 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 iPath Series B 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 IPath Series i.e., IPath Series and Global X go up and down completely randomly.
Pair Corralation between IPath Series and Global X
If you would invest (100.00) in Global X on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Global X or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
iPath Series B vs. Global X
Performance |
| Timeline |
| iPath Series B |
| Global X |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPath Series and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPath Series and Global X
The main advantage of trading using opposite IPath Series and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPath Series 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.| IPath Series vs. HUMANA INC | IPath Series vs. Aquagold International | IPath Series vs. Barloworld Ltd ADR | IPath Series vs. Morningstar Unconstrained Allocation |
| Global X vs. Fidelity High Dividend | Global X vs. Schwab Large Cap ETF | Global X vs. FT Cboe Vest | Global X vs. Vanguard SP 500 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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