Correlation Between Global X and IShares Core
Can any of the company-specific risk be diversified away by investing in both Global X and IShares Core 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 Global X and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X and iShares Core Aggressive, you can compare the effects of market volatilities on Global X and IShares Core 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 Global X with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares Core.
Diversification Opportunities for Global X and IShares Core
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X and iShares Core Aggressive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Aggressive and Global X 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 Global X are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Aggressive has no effect on the direction of Global X i.e., Global X and IShares Core go up and down completely randomly.
Pair Corralation between Global X and IShares Core
If you would invest 6,146 in iShares Core Aggressive on January 17, 2024 and sell it today you would earn a total of 942.00 from holding iShares Core Aggressive or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X vs. iShares Core Aggressive
Performance |
| Timeline |
| Global X |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core Aggressive |
Global X and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and IShares Core
The main advantage of trading using opposite Global X and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Global X vs. Invesco PureBeta MSCI | Global X vs. Aquagold International | Global X vs. Morningstar Unconstrained Allocation | Global X vs. Thrivent High Yield |
| IShares Core vs. iShares Core Growth | IShares Core vs. iShares Core Moderate | IShares Core vs. iShares Core Conservative | IShares Core vs. iShares Core Total |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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