Correlation Between Listed Funds and Global X
Can any of the company-specific risk be diversified away by investing in both Listed Funds 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 Listed Funds and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Global X Funds, you can compare the effects of market volatilities on Listed Funds 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 Listed Funds with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Global X.
Diversification Opportunities for Listed Funds and Global X
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Listed and Global is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust 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 Listed Funds 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 Listed Funds Trust 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 Listed Funds i.e., Listed Funds and Global X go up and down completely randomly.
Pair Corralation between Listed Funds and Global X
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 0.64 times more return on investment than Global X. However, Listed Funds Trust is 1.57 times less risky than Global X. It trades about 0.17 of its potential returns per unit of risk. Global X Funds is currently generating about 0.0 per unit of risk. If you would invest 2,934 in Listed Funds Trust on September 3, 2024 and sell it today you would earn a total of 484.00 from holding Listed Funds Trust or generate 16.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. Global X Funds
Performance |
| Timeline |
| Listed Funds Trust |
| Global X Funds |
Listed Funds and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Global X
The main advantage of trading using opposite Listed Funds and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds 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.| Listed Funds vs. Global X Funds | Listed Funds vs. Dell Technologies | Listed Funds vs. Juniper Networks | Listed Funds vs. HUMANA INC |
| Global X vs. SCOR PK | Global X vs. HUMANA INC | Global X vs. Aquagold International | Global X vs. Barloworld Ltd ADR |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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