Correlation Between Global X and General Shopping
Can any of the company-specific risk be diversified away by investing in both Global X and General Shopping 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 General Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and General Shopping e, you can compare the effects of market volatilities on Global X and General Shopping 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 General Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and General Shopping.
Diversification Opportunities for Global X and General Shopping
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and General is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and General Shopping e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Shopping e 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 Funds are associated (or correlated) with General Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Shopping e has no effect on the direction of Global X i.e., Global X and General Shopping go up and down completely randomly.
Pair Corralation between Global X and General Shopping
Assuming the 90 days trading horizon Global X Funds is expected to generate 0.45 times more return on investment than General Shopping. However, Global X Funds is 2.21 times less risky than General Shopping. It trades about 0.24 of its potential returns per unit of risk. General Shopping e is currently generating about -0.38 per unit of risk. If you would invest 4,585 in Global X Funds on September 1, 2024 and sell it today you would earn a total of 310.00 from holding Global X Funds or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. General Shopping e
Performance |
| Timeline |
| Global X Funds |
| General Shopping e |
Global X and General Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and General Shopping
The main advantage of trading using opposite Global X and General Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, General Shopping 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 General Shopping will offset losses from the drop in General Shopping's long position.| Global X vs. Taiwan Semiconductor Manufacturing | Global X vs. Alibaba Group Holding | Global X vs. Microsoft | Global X vs. Alphabet |
| General Shopping vs. Paycom Software | General Shopping vs. Tyson Foods | General Shopping vs. Global X Funds | General Shopping vs. Verizon Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |