Correlation Between Harvest Equal and Global X
Can any of the company-specific risk be diversified away by investing in both Harvest Equal 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 Equal 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 Equal Weight and Global X Active, you can compare the effects of market volatilities on Harvest Equal 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 Equal with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Equal and Global X.
Diversification Opportunities for Harvest Equal and Global X
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harvest and Global is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Equal Weight and Global X Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Active and Harvest Equal 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 Equal Weight 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 Active has no effect on the direction of Harvest Equal i.e., Harvest Equal and Global X go up and down completely randomly.
Pair Corralation between Harvest Equal and Global X
Assuming the 90 days trading horizon Harvest Equal Weight is expected to generate 2.03 times more return on investment than Global X. However, Harvest Equal is 2.03 times more volatile than Global X Active. It trades about 0.05 of its potential returns per unit of risk. Global X Active is currently generating about 0.07 per unit of risk. If you would invest 856.00 in Harvest Equal Weight on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Harvest Equal Weight or generate 23.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Equal Weight vs. Global X Active
Performance |
| Timeline |
| Harvest Equal Weight |
| Global X Active |
Harvest Equal and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Equal and Global X
The main advantage of trading using opposite Harvest Equal and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Equal 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 Equal vs. Hamilton Enhanced Covered | Harvest Equal vs. Hamilton Enhanced Multi Sector | Harvest Equal vs. Hamilton Canadian Financials | Harvest Equal vs. Real Estate E Commerce |
| Global X vs. iShares Core Canadian | Global X vs. BMO Mid Corporate | Global X vs. iShares 1 10Yr Laddered | Global X vs. RBC Target 2026 |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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