Correlation Between YieldMax ABNB and Global X
Can any of the company-specific risk be diversified away by investing in both YieldMax ABNB 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 YieldMax ABNB and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax ABNB Option and Global X SP, you can compare the effects of market volatilities on YieldMax ABNB 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 YieldMax ABNB with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax ABNB and Global X.
Diversification Opportunities for YieldMax ABNB and Global X
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YieldMax and Global is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax ABNB Option and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP and YieldMax ABNB 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 YieldMax ABNB Option 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 SP has no effect on the direction of YieldMax ABNB i.e., YieldMax ABNB and Global X go up and down completely randomly.
Pair Corralation between YieldMax ABNB and Global X
Given the investment horizon of 90 days YieldMax ABNB Option is expected to under-perform the Global X. In addition to that, YieldMax ABNB is 3.99 times more volatile than Global X SP. It trades about -0.05 of its total potential returns per unit of risk. Global X SP is currently generating about 0.11 per unit of volatility. If you would invest 3,320 in Global X SP on September 3, 2024 and sell it today you would earn a total of 893.00 from holding Global X SP or generate 26.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 35.16% |
| Values | Daily Returns |
YieldMax ABNB Option vs. Global X SP
Performance |
| Timeline |
| YieldMax ABNB Option |
| Global X SP |
YieldMax ABNB and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax ABNB and Global X
The main advantage of trading using opposite YieldMax ABNB and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax ABNB 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.| YieldMax ABNB vs. Global X SP | YieldMax ABNB vs. Global X NASDAQ | YieldMax ABNB vs. NEOS ETF Trust | YieldMax ABNB vs. JPMorgan Equity Premium |
| Global X vs. Global X Russell | Global X vs. Global X NASDAQ | Global X vs. NEOS ETF Trust | Global X vs. JPMorgan Equity Premium |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |