Correlation Between VictoryShares THB and Global X
Can any of the company-specific risk be diversified away by investing in both VictoryShares THB 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 VictoryShares THB and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VictoryShares THB Mid and Global X Funds, you can compare the effects of market volatilities on VictoryShares THB 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 VictoryShares THB with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of VictoryShares THB and Global X.
Diversification Opportunities for VictoryShares THB and Global X
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VictoryShares and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding VictoryShares THB Mid 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 VictoryShares THB 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 VictoryShares THB Mid 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 VictoryShares THB i.e., VictoryShares THB and Global X go up and down completely randomly.
Pair Corralation between VictoryShares THB and Global X
Given the investment horizon of 90 days VictoryShares THB Mid is expected to generate 0.92 times more return on investment than Global X. However, VictoryShares THB Mid is 1.09 times less risky than Global X. It trades about 0.11 of its potential returns per unit of risk. Global X Funds is currently generating about 0.04 per unit of risk. If you would invest 2,402 in VictoryShares THB Mid on August 24, 2024 and sell it today you would earn a total of 644.00 from holding VictoryShares THB Mid or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VictoryShares THB Mid vs. Global X Funds
Performance |
| Timeline |
| VictoryShares THB Mid |
| Global X Funds |
VictoryShares THB and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VictoryShares THB and Global X
The main advantage of trading using opposite VictoryShares THB and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VictoryShares THB 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.| VictoryShares THB vs. iShares Dividend and | VictoryShares THB vs. Martin Currie Sustainable | VictoryShares THB vs. Mast Global Battery | VictoryShares THB vs. AdvisorShares Gerber Kawasaki |
| Global X vs. iShares Dividend and | Global X vs. Martin Currie Sustainable | Global X vs. VictoryShares THB Mid | Global X vs. Mast Global Battery |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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