Correlation Between Altagas Cum and Global X
Can any of the company-specific risk be diversified away by investing in both Altagas Cum 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 Altagas Cum and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altagas Cum Red and Global X Active, you can compare the effects of market volatilities on Altagas Cum 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 Altagas Cum with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Global X.
Diversification Opportunities for Altagas Cum and Global X
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altagas and Global is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red and Global X Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Active and Altagas Cum 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 Altagas Cum Red 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 Active has no effect on the direction of Altagas Cum i.e., Altagas Cum and Global X go up and down completely randomly.
Pair Corralation between Altagas Cum and Global X
Assuming the 90 days trading horizon Altagas Cum Red is expected to generate 1.84 times more return on investment than Global X. However, Altagas Cum is 1.84 times more volatile than Global X Active. It trades about 0.33 of its potential returns per unit of risk. Global X Active is currently generating about 0.21 per unit of risk. If you would invest 1,858 in Altagas Cum Red on September 2, 2024 and sell it today you would earn a total of 107.00 from holding Altagas Cum Red or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Altagas Cum Red vs. Global X Active
Performance |
| Timeline |
| Altagas Cum Red |
| Global X Active |
Altagas Cum and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Global X
The main advantage of trading using opposite Altagas Cum and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum 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.| Altagas Cum vs. EverGen Infrastructure Corp | Altagas Cum vs. Hemisphere Energy | Altagas Cum vs. Canoe EIT Income | Altagas Cum vs. Parkland Fuel |
| Global X vs. BMO Covered Call | Global X vs. Forstrong Global Income | Global X vs. BMO Aggregate Bond | Global X vs. iShares Canadian HYBrid |
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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