Correlation Between TrimTabs Donoghue and Global X
Can any of the company-specific risk be diversified away by investing in both TrimTabs Donoghue 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 TrimTabs Donoghue and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrimTabs Donoghue Forlines and Global X Interest, you can compare the effects of market volatilities on TrimTabs Donoghue 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 TrimTabs Donoghue with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrimTabs Donoghue and Global X.
Diversification Opportunities for TrimTabs Donoghue and Global X
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TrimTabs and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding TrimTabs Donoghue Forlines and Global X Interest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Interest and TrimTabs Donoghue 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 TrimTabs Donoghue Forlines 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 Interest has no effect on the direction of TrimTabs Donoghue i.e., TrimTabs Donoghue and Global X go up and down completely randomly.
Pair Corralation between TrimTabs Donoghue and Global X
Given the investment horizon of 90 days TrimTabs Donoghue is expected to generate 1.79 times less return on investment than Global X. But when comparing it to its historical volatility, TrimTabs Donoghue Forlines is 4.97 times less risky than Global X. It trades about 0.06 of its potential returns per unit of risk. Global X Interest is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,798 in Global X Interest on August 23, 2024 and sell it today you would earn a total of 195.00 from holding Global X Interest or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrimTabs Donoghue Forlines vs. Global X Interest
Performance |
| Timeline |
| TrimTabs Donoghue |
| Global X Interest |
TrimTabs Donoghue and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrimTabs Donoghue and Global X
The main advantage of trading using opposite TrimTabs Donoghue and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrimTabs Donoghue 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.| TrimTabs Donoghue vs. iShares Interest Rate | TrimTabs Donoghue vs. iShares Interest Rate | TrimTabs Donoghue vs. WisdomTree Interest Rate |
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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.
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