Correlation Between Global X and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Global X and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on Global X and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and SCOR PK.
Diversification Opportunities for Global X and SCOR PK
Very good diversification
The 3 months correlation between Global and SCOR is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Global X i.e., Global X and SCOR PK go up and down completely randomly.
Pair Corralation between Global X and SCOR PK
Considering the 90-day investment horizon Global X is expected to generate 2.1 times less return on investment than SCOR PK. But when comparing it to its historical volatility, Global X Funds is 2.95 times less risky than SCOR PK. It trades about 0.03 of its potential returns per unit of risk. SCOR PK is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 248.00 in SCOR PK on September 12, 2024 and sell it today you would earn a total of 11.00 from holding SCOR PK or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Global X Funds vs. SCOR PK
Performance |
| Timeline |
| Global X Funds |
| SCOR PK |
Global X and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and SCOR PK
The main advantage of trading using opposite Global X and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Global X vs. SPDR Global Dow | Global X vs. First Trust Dow | Global X vs. SPDR SP Capital | Global X vs. First Trust Capital |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |