Correlation Between Legal General and Global X
Specify exactly 2 symbols:
By analyzing existing cross correlation between Legal General Ucits and Global X Bitcoin, you can compare the effects of market volatilities on Legal General 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 Legal General with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legal General and Global X.
Diversification Opportunities for Legal General and Global X
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Legal and Global is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Legal General Ucits and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and Legal General 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 Legal General Ucits 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 Bitcoin has no effect on the direction of Legal General i.e., Legal General and Global X go up and down completely randomly.
Pair Corralation between Legal General and Global X
Assuming the 90 days trading horizon Legal General is expected to generate 3.72 times less return on investment than Global X. But when comparing it to its historical volatility, Legal General Ucits is 3.58 times less risky than Global X. It trades about 0.11 of its potential returns per unit of risk. Global X Bitcoin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Legal General Ucits vs. Global X Bitcoin
Performance |
| Timeline |
| Legal General Ucits |
| Global X Bitcoin |
Legal General and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legal General and Global X
The main advantage of trading using opposite Legal General and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legal General 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.| Legal General vs. Legal General UCITS | Legal General vs. Legal General Ucits | Legal General vs. Legal General UCITS | Legal General vs. Legal General UCITS |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |