Correlation Between Global X and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Global X and Scottie Resources 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 Scottie Resources 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 Scottie Resources Corp, you can compare the effects of market volatilities on Global X and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Scottie Resources.
Diversification Opportunities for Global X and Scottie Resources
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Scottie is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Global X i.e., Global X and Scottie Resources go up and down completely randomly.
Pair Corralation between Global X and Scottie Resources
Assuming the 90 days trading horizon Global X Active is expected to generate 0.14 times more return on investment than Scottie Resources. However, Global X Active is 7.22 times less risky than Scottie Resources. It trades about 0.06 of its potential returns per unit of risk. Scottie Resources Corp is currently generating about 0.0 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 | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global X Active vs. Scottie Resources Corp
Performance |
| Timeline |
| Global X Active |
| Scottie Resources Corp |
Global X and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Scottie Resources
The main advantage of trading using opposite Global X and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' 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 |
| Scottie Resources vs. Precipitate Gold Corp | Scottie Resources vs. Libero Copper Corp | Scottie Resources vs. Chakana Copper Corp | Scottie Resources vs. ROKMASTER Resources Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |