Correlation Between GLOBAL X and Harvest Eli
Can any of the company-specific risk be diversified away by investing in both GLOBAL X and Harvest Eli 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 Harvest Eli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBAL X HIGH and Harvest Eli Lilly, you can compare the effects of market volatilities on GLOBAL X and Harvest Eli 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 Harvest Eli. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBAL X and Harvest Eli.
Diversification Opportunities for GLOBAL X and Harvest Eli
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GLOBAL and Harvest is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding GLOBAL X HIGH and Harvest Eli Lilly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Eli Lilly 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 HIGH are associated (or correlated) with Harvest Eli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Eli Lilly has no effect on the direction of GLOBAL X i.e., GLOBAL X and Harvest Eli go up and down completely randomly.
Pair Corralation between GLOBAL X and Harvest Eli
Assuming the 90 days trading horizon GLOBAL X HIGH is expected to generate 0.02 times more return on investment than Harvest Eli. However, GLOBAL X HIGH is 40.23 times less risky than Harvest Eli. It trades about 0.33 of its potential returns per unit of risk. Harvest Eli Lilly is currently generating about -0.06 per unit of risk. If you would invest 4,577 in GLOBAL X HIGH on November 2, 2024 and sell it today you would earn a total of 434.00 from holding GLOBAL X HIGH or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
GLOBAL X HIGH vs. Harvest Eli Lilly
Performance |
| Timeline |
| GLOBAL X HIGH |
| Harvest Eli Lilly |
GLOBAL X and Harvest Eli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBAL X and Harvest Eli
The main advantage of trading using opposite GLOBAL X and Harvest Eli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBAL X position performs unexpectedly, Harvest Eli 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 Harvest Eli will offset losses from the drop in Harvest Eli's long position.| GLOBAL X vs. Purpose High Interest | GLOBAL X vs. CI High Interest | GLOBAL X vs. Global X Cash | GLOBAL X vs. iShares Core Equity |
| Harvest Eli vs. Harvest Premium Yield | Harvest Eli vs. Harvest Balanced Income | Harvest Eli vs. Harvest Diversified High | Harvest Eli vs. Harvest Energy Leaders |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |