Correlation Between Global X and Mountain Boy
Can any of the company-specific risk be diversified away by investing in both Global X and Mountain Boy 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 Mountain Boy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Active and Mountain Boy Minerals, you can compare the effects of market volatilities on Global X and Mountain Boy 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 Mountain Boy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Mountain Boy.
Diversification Opportunities for Global X and Mountain Boy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Mountain is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and Mountain Boy Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Boy Minerals 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 Active are associated (or correlated) with Mountain Boy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Boy Minerals has no effect on the direction of Global X i.e., Global X and Mountain Boy go up and down completely randomly.
Pair Corralation between Global X and Mountain Boy
Assuming the 90 days trading horizon Global X Active is expected to generate 0.07 times more return on investment than Mountain Boy. However, Global X Active is 14.06 times less risky than Mountain Boy. It trades about 0.06 of its potential returns per unit of risk. Mountain Boy Minerals is currently generating about -0.01 per unit of risk. If you would invest 779.00 in Global X Active on September 2, 2024 and sell it today you would earn a total of 158.00 from holding Global X Active or generate 20.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global X Active vs. Mountain Boy Minerals
Performance |
| Timeline |
| Global X Active |
| Mountain Boy Minerals |
Global X and Mountain Boy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Mountain Boy
The main advantage of trading using opposite Global X and Mountain Boy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Mountain Boy 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 Mountain Boy will offset losses from the drop in Mountain Boy's long position.| Global X vs. BMO Covered Call | Global X vs. Forstrong Global Income | Global X vs. BMO Aggregate Bond | Global X vs. iShares Canadian HYBrid |
| Mountain Boy vs. Minaurum Gold | Mountain Boy vs. Dolly Varden Silver | Mountain Boy vs. Santacruz Silv | Mountain Boy vs. GoGold Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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