Correlation Between Listed Funds and Global X
Can any of the company-specific risk be diversified away by investing in both Listed Funds 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 Listed Funds and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Global X Blockchain, you can compare the effects of market volatilities on Listed Funds 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 Listed Funds with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Global X.
Diversification Opportunities for Listed Funds and Global X
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Listed and Global is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Global X Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Blockchain and Listed Funds 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 Listed Funds Trust 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 Blockchain has no effect on the direction of Listed Funds i.e., Listed Funds and Global X go up and down completely randomly.
Pair Corralation between Listed Funds and Global X
Given the investment horizon of 90 days Listed Funds is expected to generate 5.24 times less return on investment than Global X. But when comparing it to its historical volatility, Listed Funds Trust is 5.41 times less risky than Global X. It trades about 0.08 of its potential returns per unit of risk. Global X Blockchain is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,853 in Global X Blockchain on September 3, 2024 and sell it today you would earn a total of 4,978 from holding Global X Blockchain or generate 268.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. Global X Blockchain
Performance |
| Timeline |
| Listed Funds Trust |
| Global X Blockchain |
Listed Funds and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Global X
The main advantage of trading using opposite Listed Funds and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds 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.| Listed Funds vs. Schwab Strategic Trust | Listed Funds vs. iShares Blockchain and | Listed Funds vs. Clarkson PLC | Listed Funds vs. Invesco Alerian Galaxy |
| Global X vs. Vanguard Industrials Index | Global X vs. Vanguard Consumer Discretionary | Global X vs. Vanguard Materials Index | Global X vs. Vanguard Health Care |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |