Correlation Between Invesco EQQQ and Global X
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By analyzing existing cross correlation between Invesco EQQQ NASDAQ 100 and Global X FinTech, you can compare the effects of market volatilities on Invesco EQQQ 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 Invesco EQQQ with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco EQQQ and Global X.
Diversification Opportunities for Invesco EQQQ and Global X
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Invesco and Global is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Invesco EQQQ NASDAQ 100 and Global X FinTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X FinTech and Invesco EQQQ 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 Invesco EQQQ NASDAQ 100 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 FinTech has no effect on the direction of Invesco EQQQ i.e., Invesco EQQQ and Global X go up and down completely randomly.
Pair Corralation between Invesco EQQQ and Global X
Assuming the 90 days trading horizon Invesco EQQQ is expected to generate 3.73 times less return on investment than Global X. In addition to that, Invesco EQQQ is 1.08 times more volatile than Global X FinTech. It trades about 0.04 of its total potential returns per unit of risk. Global X FinTech is currently generating about 0.16 per unit of volatility. If you would invest 962.00 in Global X FinTech on November 2, 2024 and sell it today you would earn a total of 40.00 from holding Global X FinTech or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco EQQQ NASDAQ 100 vs. Global X FinTech
Performance |
| Timeline |
| Invesco EQQQ NASDAQ |
| Global X FinTech |
Invesco EQQQ and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco EQQQ and Global X
The main advantage of trading using opposite Invesco EQQQ and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco EQQQ 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.| Invesco EQQQ vs. Invesco Quantitative Strats | Invesco EQQQ vs. Invesco JPX Nikkei 400 | Invesco EQQQ vs. Invesco Markets plc | Invesco EQQQ vs. Invesco MSCI Europe |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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