Correlation Between Credit Acceptance and Global X
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and Global X 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 Credit Acceptance and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Global X Funds, you can compare the effects of market volatilities on Credit Acceptance and Global X 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 Credit Acceptance with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Global X.
Diversification Opportunities for Credit Acceptance and Global X
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and Global X go up and down completely randomly.
Pair Corralation between Credit Acceptance and Global X
If you would invest 32,500 in Credit Acceptance on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Credit Acceptance vs. Global X Funds
Performance |
| Timeline |
| Credit Acceptance |
| Global X Funds |
Credit Acceptance and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Global X
The main advantage of trading using opposite Credit Acceptance and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Credit Acceptance vs. United Rentals | Credit Acceptance vs. Verizon Communications | Credit Acceptance vs. Brpr Corporate Offices | Credit Acceptance vs. Charter Communications |
| Global X vs. British American Tobacco | Global X vs. Metalurgica Gerdau SA | Global X vs. STAG Industrial, | Global X vs. Ares Management |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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