Correlation Between Global X and Pinduoduo
Can any of the company-specific risk be diversified away by investing in both Global X and Pinduoduo 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 Pinduoduo 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 Pinduoduo, you can compare the effects of market volatilities on Global X and Pinduoduo 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 Pinduoduo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Pinduoduo.
Diversification Opportunities for Global X and Pinduoduo
Good diversification
The 3 months correlation between Global and Pinduoduo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Pinduoduo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinduoduo 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 Pinduoduo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinduoduo has no effect on the direction of Global X i.e., Global X and Pinduoduo go up and down completely randomly.
Pair Corralation between Global X and Pinduoduo
Assuming the 90 days trading horizon Global X Funds is expected to generate 0.39 times more return on investment than Pinduoduo. However, Global X Funds is 2.56 times less risky than Pinduoduo. It trades about 0.11 of its potential returns per unit of risk. Pinduoduo is currently generating about 0.0 per unit of risk. If you would invest 3,485 in Global X Funds on September 14, 2024 and sell it today you would earn a total of 1,515 from holding Global X Funds or generate 43.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. Pinduoduo
Performance |
| Timeline |
| Global X Funds |
| Pinduoduo |
Global X and Pinduoduo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Pinduoduo
The main advantage of trading using opposite Global X and Pinduoduo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Pinduoduo 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 Pinduoduo will offset losses from the drop in Pinduoduo's long position.| Global X vs. Taiwan Semiconductor Manufacturing | Global X vs. Apple Inc | Global X vs. Alibaba Group Holding | Global X vs. Microsoft |
| Pinduoduo vs. Verizon Communications | Pinduoduo vs. MAHLE Metal Leve | Pinduoduo vs. Healthpeak Properties | Pinduoduo vs. CVS Health |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |