Correlation Between Global X and Astoria Quality
Can any of the company-specific risk be diversified away by investing in both Global X and Astoria Quality 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 Astoria Quality 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 Astoria Quality Kings, you can compare the effects of market volatilities on Global X and Astoria Quality 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 Astoria Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Astoria Quality.
Diversification Opportunities for Global X and Astoria Quality
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Global and Astoria is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Astoria Quality Kings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Quality Kings 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 Astoria Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Quality Kings has no effect on the direction of Global X i.e., Global X and Astoria Quality go up and down completely randomly.
Pair Corralation between Global X and Astoria Quality
Given the investment horizon of 90 days Global X is expected to generate 1.15 times less return on investment than Astoria Quality. In addition to that, Global X is 1.04 times more volatile than Astoria Quality Kings. It trades about 0.11 of its total potential returns per unit of risk. Astoria Quality Kings is currently generating about 0.14 per unit of volatility. If you would invest 2,447 in Astoria Quality Kings on August 27, 2024 and sell it today you would earn a total of 731.00 from holding Astoria Quality Kings or generate 29.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. Astoria Quality Kings
Performance |
| Timeline |
| Global X Funds |
| Astoria Quality Kings |
Global X and Astoria Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Astoria Quality
The main advantage of trading using opposite Global X and Astoria Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Astoria Quality 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 Astoria Quality will offset losses from the drop in Astoria Quality's long position.| Global X vs. Cambria Micro And | Global X vs. Invesco Actively Managed | Global X vs. iShares Trust | Global X vs. EMCS |
| Astoria Quality vs. Cambria Micro And | Astoria Quality vs. Invesco Actively Managed | Astoria Quality vs. iShares Trust | Astoria Quality vs. EMCS |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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