Correlation Between Global X and Accelerate Arbitrage
Can any of the company-specific risk be diversified away by investing in both Global X and Accelerate Arbitrage 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 Accelerate Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Seasonal and Accelerate Arbitrage, you can compare the effects of market volatilities on Global X and Accelerate Arbitrage 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 Accelerate Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Accelerate Arbitrage.
Diversification Opportunities for Global X and Accelerate Arbitrage
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Accelerate is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Global X Seasonal and Accelerate Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Arbitrage 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 Seasonal are associated (or correlated) with Accelerate Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Arbitrage has no effect on the direction of Global X i.e., Global X and Accelerate Arbitrage go up and down completely randomly.
Pair Corralation between Global X and Accelerate Arbitrage
Assuming the 90 days trading horizon Global X Seasonal is expected to generate 1.29 times more return on investment than Accelerate Arbitrage. However, Global X is 1.29 times more volatile than Accelerate Arbitrage. It trades about 0.13 of its potential returns per unit of risk. Accelerate Arbitrage is currently generating about -0.02 per unit of risk. If you would invest 3,119 in Global X Seasonal on August 25, 2024 and sell it today you would earn a total of 79.00 from holding Global X Seasonal or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global X Seasonal vs. Accelerate Arbitrage
Performance |
| Timeline |
| Global X Seasonal |
| Accelerate Arbitrage |
Global X and Accelerate Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Accelerate Arbitrage
The main advantage of trading using opposite Global X and Accelerate Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Accelerate Arbitrage 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 Accelerate Arbitrage will offset losses from the drop in Accelerate Arbitrage's long position.| Global X vs. Global X Active | Global X vs. Global X Active | Global X vs. Global X Active | Global X vs. Global X Active |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |