Correlation Between Harvest Tech and Global X
Can any of the company-specific risk be diversified away by investing in both Harvest Tech 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 Harvest Tech and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Tech Achievers and Global X 7 10, you can compare the effects of market volatilities on Harvest Tech 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 Harvest Tech with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Tech and Global X.
Diversification Opportunities for Harvest Tech and Global X
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harvest and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Tech Achievers and Global X 7 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X 7 and Harvest Tech 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 Harvest Tech Achievers 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 7 has no effect on the direction of Harvest Tech i.e., Harvest Tech and Global X go up and down completely randomly.
Pair Corralation between Harvest Tech and Global X
Assuming the 90 days trading horizon Harvest Tech Achievers is expected to generate 2.99 times more return on investment than Global X. However, Harvest Tech is 2.99 times more volatile than Global X 7 10. It trades about 0.16 of its potential returns per unit of risk. Global X 7 10 is currently generating about 0.19 per unit of risk. If you would invest 1,848 in Harvest Tech Achievers on September 1, 2024 and sell it today you would earn a total of 72.00 from holding Harvest Tech Achievers or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harvest Tech Achievers vs. Global X 7 10
Performance |
| Timeline |
| Harvest Tech Achievers |
| Global X 7 |
Harvest Tech and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Tech and Global X
The main advantage of trading using opposite Harvest Tech and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Tech 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.| Harvest Tech vs. Harvest Brand Leaders | Harvest Tech vs. Harvest Healthcare Leaders | Harvest Tech vs. Harvest Equal Weight | Harvest Tech vs. Harvest Diversified Monthly |
| Global X vs. Global X Canadian | Global X vs. iShares MSCI Canada | Global X vs. Global X Europe | Global X vs. Global X Intl |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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