Correlation Between Global X and IShares Robotics
Can any of the company-specific risk be diversified away by investing in both Global X and IShares Robotics 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 Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Robotics and iShares Robotics and, you can compare the effects of market volatilities on Global X and IShares Robotics 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 Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares Robotics.
Diversification Opportunities for Global X and IShares Robotics
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and IShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Global X Robotics and iShares Robotics and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Robotics 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 Robotics are associated (or correlated) with IShares Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Robotics has no effect on the direction of Global X i.e., Global X and IShares Robotics go up and down completely randomly.
Pair Corralation between Global X and IShares Robotics
Given the investment horizon of 90 days Global X Robotics is expected to generate 1.16 times more return on investment than IShares Robotics. However, Global X is 1.16 times more volatile than iShares Robotics and. It trades about 0.01 of its potential returns per unit of risk. iShares Robotics and is currently generating about -0.1 per unit of risk. If you would invest 3,157 in Global X Robotics on March 22, 2024 and sell it today you would earn a total of 6.00 from holding Global X Robotics or generate 0.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Global X Robotics vs. iShares Robotics and
Performance |
Timeline |
Global X Robotics |
iShares Robotics |
Global X and IShares Robotics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global X and IShares Robotics
The main advantage of trading using opposite Global X and IShares Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares Robotics 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 Robotics will offset losses from the drop in IShares Robotics' long position.Global X vs. SPDR Kensho New | Global X vs. iShares Robotics and | Global X vs. Global X FinTech | Global X vs. iShares Genomics Immunology |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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