Correlation Between Horizon Kinetics and Global X
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics 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 Horizon Kinetics and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics Medical and Global X Funds, you can compare the effects of market volatilities on Horizon Kinetics 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 Horizon Kinetics with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Global X.
Diversification Opportunities for Horizon Kinetics and Global X
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Horizon and Global is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Medical 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 Horizon Kinetics 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 Horizon Kinetics Medical 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 Horizon Kinetics i.e., Horizon Kinetics and Global X go up and down completely randomly.
Pair Corralation between Horizon Kinetics and Global X
Given the investment horizon of 90 days Horizon Kinetics Medical is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Horizon Kinetics Medical is 1.33 times less risky than Global X. The etf trades about -0.17 of its potential returns per unit of risk. The Global X Funds is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,723 in Global X Funds on August 30, 2024 and sell it today you would earn a total of 200.00 from holding Global X Funds or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Medical vs. Global X Funds
Performance |
| Timeline |
| Horizon Kinetics Medical |
| Global X Funds |
Horizon Kinetics and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and Global X
The main advantage of trading using opposite Horizon Kinetics and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics 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.| Horizon Kinetics vs. Harbor Health Care | Horizon Kinetics vs. Myriad Genetics | Horizon Kinetics vs. Genenta Science SpA |
| Global X vs. First Trust Exchange Traded | Global X vs. Ultimus Managers Trust | Global X vs. Horizon Kinetics Medical | Global X vs. Harbor Health Care |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |