Correlation Between Global X and VR
Can any of the company-specific risk be diversified away by investing in both Global X and VR 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 VR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and VR, you can compare the effects of market volatilities on Global X and VR 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 VR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and VR.
Diversification Opportunities for Global X and VR
Very good diversification
The 3 months correlation between Global and VR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and VR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VR 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 Funds are associated (or correlated) with VR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VR has no effect on the direction of Global X i.e., Global X and VR go up and down completely randomly.
Pair Corralation between Global X and VR
If you would invest 2,704 in Global X Funds on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Global X Funds or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Global X Funds vs. VR
Performance |
| Timeline |
| Global X Funds |
| VR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and VR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and VR
The main advantage of trading using opposite Global X and VR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, VR 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 VR will offset losses from the drop in VR's long position.| Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. iShares Emerging Markets | Global X vs. Global X SuperDividend |
| VR vs. AXIS Capital Holdings | VR vs. Renaissancere Holdings | VR vs. Aspira Womens Health | VR vs. Prenetics Global |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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