Correlation Between Global X and SPDR Bloomberg

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Can any of the company-specific risk be diversified away by investing in both Global X and SPDR Bloomberg 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 SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and SPDR Bloomberg 1 3, you can compare the effects of market volatilities on Global X and SPDR Bloomberg 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 SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and SPDR Bloomberg.

Diversification Opportunities for Global X and SPDR Bloomberg

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Global and SPDR is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and SPDR Bloomberg 1 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 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 Funds are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg 1 has no effect on the direction of Global X i.e., Global X and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between Global X and SPDR Bloomberg

Given the investment horizon of 90 days Global X Funds is expected to generate 18.2 times more return on investment than SPDR Bloomberg. However, Global X is 18.2 times more volatile than SPDR Bloomberg 1 3. It trades about 0.11 of its potential returns per unit of risk. SPDR Bloomberg 1 3 is currently generating about 0.97 per unit of risk. If you would invest  4,799  in Global X Funds on November 3, 2024 and sell it today you would earn a total of  28.00  from holding Global X Funds or generate 0.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Global X Funds  vs.  SPDR Bloomberg 1 3

 Performance 
       Timeline  
Global X Funds 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global X Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Global X is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
SPDR Bloomberg 1 

Risk-Adjusted Performance

90 of 100

 
Weak
 
Strong
Market Crasher
Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg 1 3 are ranked lower than 90 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Global X and SPDR Bloomberg Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Global X and SPDR Bloomberg

The main advantage of trading using opposite Global X and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.
The idea behind Global X Funds and SPDR Bloomberg 1 3 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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