Correlation Between Global X and XBTF
Can any of the company-specific risk be diversified away by investing in both Global X and XBTF 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 XBTF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Blockchain and XBTF, you can compare the effects of market volatilities on Global X and XBTF 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 XBTF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and XBTF.
Diversification Opportunities for Global X and XBTF
Pay attention - limited upside
The 3 months correlation between Global and XBTF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and XBTF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XBTF 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 Blockchain are associated (or correlated) with XBTF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XBTF has no effect on the direction of Global X i.e., Global X and XBTF go up and down completely randomly.
Pair Corralation between Global X and XBTF
If you would invest 1,816 in Global X Blockchain on November 19, 2024 and sell it today you would earn a total of 3,676 from holding Global X Blockchain or generate 202.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X Blockchain vs. XBTF
Performance |
| Timeline |
| Global X Blockchain |
| XBTF |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Global X and XBTF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and XBTF
The main advantage of trading using opposite Global X and XBTF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, XBTF 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 XBTF will offset losses from the drop in XBTF's long position.| Global X vs. VanEck Digital Transformation | Global X vs. Bitwise Crypto Industry | Global X vs. First Trust Indxx | Global X vs. First Trust SkyBridge |
| XBTF vs. Valkyrie Bitcoin Strategy | XBTF vs. Global X Blockchain | XBTF vs. Bitwise Crypto Industry | XBTF vs. VanEck Digital Transformation |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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