Correlation Between Global X and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both Global X and Kelly Strategic 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 Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Genomics and Kelly Strategic Management, you can compare the effects of market volatilities on Global X and Kelly Strategic 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 Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Kelly Strategic.
Diversification Opportunities for Global X and Kelly Strategic
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Kelly is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Global X Genomics and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana 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 Genomics are associated (or correlated) with Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of Global X i.e., Global X and Kelly Strategic go up and down completely randomly.
Pair Corralation between Global X and Kelly Strategic
Given the investment horizon of 90 days Global X Genomics is expected to generate 0.64 times more return on investment than Kelly Strategic. However, Global X Genomics is 1.56 times less risky than Kelly Strategic. It trades about -0.01 of its potential returns per unit of risk. Kelly Strategic Management is currently generating about -0.06 per unit of risk. If you would invest 1,298 in Global X Genomics on September 12, 2024 and sell it today you would lose (230.50) from holding Global X Genomics or give up 17.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.7% |
| Values | Daily Returns |
Global X Genomics vs. Kelly Strategic Management
Performance |
| Timeline |
| Global X Genomics |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Kelly Strategic
The main advantage of trading using opposite Global X and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| Global X vs. iShares Genomics Immunology | Global X vs. Global X E commerce | Global X vs. Global X Internet | Global X vs. Global X FinTech |
| Kelly Strategic vs. First Trust Nasdaq | Kelly Strategic vs. Invesco Nasdaq Biotechnology | Kelly Strategic vs. Global X Genomics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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