Correlation Between Global X and Multilaser Industrial
Can any of the company-specific risk be diversified away by investing in both Global X and Multilaser Industrial 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 Multilaser Industrial 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 Multilaser Industrial SA, you can compare the effects of market volatilities on Global X and Multilaser Industrial 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 Multilaser Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Multilaser Industrial.
Diversification Opportunities for Global X and Multilaser Industrial
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Multilaser is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial 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 Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of Global X i.e., Global X and Multilaser Industrial go up and down completely randomly.
Pair Corralation between Global X and Multilaser Industrial
Assuming the 90 days trading horizon Global X Funds is expected to generate 0.39 times more return on investment than Multilaser Industrial. However, Global X Funds is 2.6 times less risky than Multilaser Industrial. It trades about 0.28 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.43 per unit of risk. If you would invest 4,665 in Global X Funds on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Global X Funds or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. Multilaser Industrial SA
Performance |
| Timeline |
| Global X Funds |
| Multilaser Industrial |
Global X and Multilaser Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Multilaser Industrial
The main advantage of trading using opposite Global X and Multilaser Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Multilaser Industrial 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 Multilaser Industrial will offset losses from the drop in Multilaser Industrial's long position.| Global X vs. Taiwan Semiconductor Manufacturing | Global X vs. Apple Inc | Global X vs. Alibaba Group Holding | Global X vs. Microsoft |
| Multilaser Industrial vs. Intelbras SA | Multilaser Industrial vs. Pet Center Comrcio | Multilaser Industrial vs. Locaweb Servios de | Multilaser Industrial vs. Mliuz SA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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