Correlation Between Global Masters and XReality
Can any of the company-specific risk be diversified away by investing in both Global Masters and XReality 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 Masters and XReality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Masters and xReality Group, you can compare the effects of market volatilities on Global Masters and XReality 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 Masters with a short position of XReality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Masters and XReality.
Diversification Opportunities for Global Masters and XReality
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and XReality is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Global Masters and xReality Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on xReality Group and Global Masters 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 Masters are associated (or correlated) with XReality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of xReality Group has no effect on the direction of Global Masters i.e., Global Masters and XReality go up and down completely randomly.
Pair Corralation between Global Masters and XReality
Assuming the 90 days trading horizon Global Masters is expected to generate 0.27 times more return on investment than XReality. However, Global Masters is 3.68 times less risky than XReality. It trades about 0.06 of its potential returns per unit of risk. xReality Group is currently generating about 0.0 per unit of risk. If you would invest 232.00 in Global Masters on August 27, 2024 and sell it today you would earn a total of 116.00 from holding Global Masters or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Masters vs. xReality Group
Performance |
| Timeline |
| Global Masters |
| xReality Group |
Global Masters and XReality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Masters and XReality
The main advantage of trading using opposite Global Masters and XReality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Masters position performs unexpectedly, XReality 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 XReality will offset losses from the drop in XReality's long position.| Global Masters vs. Australian Foundation Investment | Global Masters vs. GQG Partners DRC | Global Masters vs. MFF Capital Investments | Global Masters vs. Metrics Master Income |
| XReality vs. Summit Resources Limited | XReality vs. Ecofibre | XReality vs. iShares Global Healthcare | XReality vs. Adriatic Metals 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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