Correlation Between Iron Mountain and Global X
Can any of the company-specific risk be diversified away by investing in both Iron Mountain 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 Iron Mountain and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iron Mountain Incorporated and Global X Funds, you can compare the effects of market volatilities on Iron Mountain 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 Iron Mountain with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iron Mountain and Global X.
Diversification Opportunities for Iron Mountain and Global X
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iron and Global is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Iron Mountain Incorporated and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Iron Mountain 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 Iron Mountain Incorporated 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 Funds has no effect on the direction of Iron Mountain i.e., Iron Mountain and Global X go up and down completely randomly.
Pair Corralation between Iron Mountain and Global X
Assuming the 90 days trading horizon Iron Mountain Incorporated is expected to under-perform the Global X. In addition to that, Iron Mountain is 1.27 times more volatile than Global X Funds. It trades about -0.36 of its total potential returns per unit of risk. Global X Funds is currently generating about -0.06 per unit of volatility. If you would invest 4,760 in Global X Funds on December 5, 2024 and sell it today you would lose (105.00) from holding Global X Funds or give up 2.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Iron Mountain Incorporated vs. Global X Funds
Performance |
Timeline |
Iron Mountain |
Global X Funds |
Iron Mountain and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iron Mountain and Global X
The main advantage of trading using opposite Iron Mountain and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iron Mountain 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.Iron Mountain vs. Automatic Data Processing | Iron Mountain vs. NXP Semiconductors NV | Iron Mountain vs. salesforce inc | Iron Mountain vs. GP Investments |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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