Correlation Between Global X and WGRO
Can any of the company-specific risk be diversified away by investing in both Global X and WGRO 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 WGRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Thematic and WGRO, you can compare the effects of market volatilities on Global X and WGRO 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 WGRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and WGRO.
Diversification Opportunities for Global X and WGRO
Very weak diversification
The 3 months correlation between Global and WGRO is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global X Thematic and WGRO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WGRO 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 Thematic are associated (or correlated) with WGRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WGRO has no effect on the direction of Global X i.e., Global X and WGRO go up and down completely randomly.
Pair Corralation between Global X and WGRO
If you would invest 2,488 in Global X Thematic on August 26, 2024 and sell it today you would lose (2.00) from holding Global X Thematic or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global X Thematic vs. WGRO
Performance |
| Timeline |
| Global X Thematic |
| WGRO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and WGRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and WGRO
The main advantage of trading using opposite Global X and WGRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, WGRO 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 WGRO will offset losses from the drop in WGRO's long position.| Global X vs. Main Sector Rotation | Global X vs. Franklin Exponential Data | Global X vs. Goldman Sachs Innovate |
| WGRO vs. iShares Small Cap | WGRO vs. Virtus ETF Trust | WGRO vs. Amplify Thematic All Stars | WGRO vs. ProShares Nasdaq 100 Dorsey |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |