Correlation Between Humankind Benefit and Global X
Can any of the company-specific risk be diversified away by investing in both Humankind Benefit and Global X 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 Humankind Benefit and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humankind Benefit and Global X Funds, you can compare the effects of market volatilities on Humankind Benefit and Global X 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 Humankind Benefit with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humankind Benefit and Global X.
Diversification Opportunities for Humankind Benefit and Global X
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humankind and Global is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Humankind Benefit and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Humankind Benefit 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 Humankind Benefit are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Humankind Benefit i.e., Humankind Benefit and Global X go up and down completely randomly.
Pair Corralation between Humankind Benefit and Global X
Given the investment horizon of 90 days Humankind Benefit is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Humankind Benefit is 1.25 times less risky than Global X. The etf trades about -0.06 of its potential returns per unit of risk. The Global X Funds is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,704 in Global X Funds on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Global X Funds or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humankind Benefit vs. Global X Funds
Performance |
| Timeline |
| Humankind Benefit |
| Global X Funds |
Humankind Benefit and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humankind Benefit and Global X
The main advantage of trading using opposite Humankind Benefit and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humankind Benefit position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Humankind Benefit vs. Vanguard Value Index | Humankind Benefit vs. Vanguard High Dividend | Humankind Benefit vs. iShares Russell 1000 | Humankind Benefit vs. iShares Core Dividend |
| Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. iShares Emerging Markets | Global X vs. Global X SuperDividend |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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