Correlation Between Global X and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Global X and Martin Currie 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 Martin Currie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Disruptive and Martin Currie Sustainable, you can compare the effects of market volatilities on Global X and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Martin Currie.
Diversification Opportunities for Global X and Martin Currie
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Martin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Global X Disruptive and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Disruptive are associated (or correlated) with Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Global X i.e., Global X and Martin Currie go up and down completely randomly.
Pair Corralation between Global X and Martin Currie
Given the investment horizon of 90 days Global X Disruptive is expected to under-perform the Martin Currie. In addition to that, Global X is 1.41 times more volatile than Martin Currie Sustainable. It trades about -0.1 of its total potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.07 per unit of volatility. If you would invest 1,357 in Martin Currie Sustainable on December 2, 2024 and sell it today you would earn a total of 53.00 from holding Martin Currie Sustainable or generate 3.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Global X Disruptive vs. Martin Currie Sustainable
Performance |
Timeline |
Global X Disruptive |
Martin Currie Sustainable |
Global X and Martin Currie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global X and Martin Currie
The main advantage of trading using opposite Global X and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.Global X vs. VanEck Vectors ETF | Global X vs. Global X AgTech | Global X vs. Global X Clean | Global X vs. Global X Wind |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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