Correlation Between Global X and YUMY
Can any of the company-specific risk be diversified away by investing in both Global X and YUMY 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 YUMY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Disruptive and YUMY, you can compare the effects of market volatilities on Global X and YUMY 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 YUMY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and YUMY.
Diversification Opportunities for Global X and YUMY
Pay attention - limited upside
The 3 months correlation between Global and YUMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Disruptive and YUMY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YUMY 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 Disruptive are associated (or correlated) with YUMY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YUMY has no effect on the direction of Global X i.e., Global X and YUMY go up and down completely randomly.
Pair Corralation between Global X and YUMY
If you would invest 1,457 in Global X Disruptive on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Global X Disruptive or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X Disruptive vs. YUMY
Performance |
| Timeline |
| Global X Disruptive |
| YUMY |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Global X and YUMY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and YUMY
The main advantage of trading using opposite Global X and YUMY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, YUMY 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 YUMY will offset losses from the drop in YUMY's long position.| Global X vs. VanEck Vectors ETF | Global X vs. Global X AgTech | Global X vs. Global X Clean | Global X vs. Global X Wind |
| YUMY vs. Global X AgTech | YUMY vs. VegTech Plant based Innovation | YUMY vs. VanEck Vectors ETF | YUMY vs. First Trust Nasdaq |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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