Correlation Between Global X and Harvest Equal
Can any of the company-specific risk be diversified away by investing in both Global X and Harvest Equal 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 Harvest Equal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Uranium and Harvest Equal Weight, you can compare the effects of market volatilities on Global X and Harvest Equal 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 Harvest Equal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Harvest Equal.
Diversification Opportunities for Global X and Harvest Equal
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Harvest is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Global X Uranium and Harvest Equal Weight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Equal Weight 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 Uranium are associated (or correlated) with Harvest Equal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Equal Weight has no effect on the direction of Global X i.e., Global X and Harvest Equal go up and down completely randomly.
Pair Corralation between Global X and Harvest Equal
Assuming the 90 days trading horizon Global X is expected to generate 1.38 times less return on investment than Harvest Equal. In addition to that, Global X is 1.88 times more volatile than Harvest Equal Weight. It trades about 0.05 of its total potential returns per unit of risk. Harvest Equal Weight is currently generating about 0.13 per unit of volatility. If you would invest 1,006 in Harvest Equal Weight on October 22, 2024 and sell it today you would earn a total of 24.00 from holding Harvest Equal Weight or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Uranium vs. Harvest Equal Weight
Performance |
| Timeline |
| Global X Uranium |
| Harvest Equal Weight |
Global X and Harvest Equal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Harvest Equal
The main advantage of trading using opposite Global X and Harvest Equal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Harvest Equal 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 Harvest Equal will offset losses from the drop in Harvest Equal's long position.| Global X vs. Sprott Physical Uranium | Global X vs. Global X Lithium | Global X vs. Global Atomic Corp | Global X vs. NexGen Energy |
| Harvest Equal vs. Harvest Premium Yield | Harvest Equal vs. Harvest Balanced Income | Harvest Equal vs. Harvest Energy Leaders | Harvest Equal vs. Harvest Eli Lilly |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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