Correlation Between Global X and FIVR
Can any of the company-specific risk be diversified away by investing in both Global X and FIVR 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 FIVR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X NASDAQ and FIVR, you can compare the effects of market volatilities on Global X and FIVR 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 FIVR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and FIVR.
Diversification Opportunities for Global X and FIVR
Poor diversification
The 3 months correlation between Global and FIVR is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Global X NASDAQ and FIVR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIVR 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 NASDAQ are associated (or correlated) with FIVR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIVR has no effect on the direction of Global X i.e., Global X and FIVR go up and down completely randomly.
Pair Corralation between Global X and FIVR
If you would invest 1,676 in Global X NASDAQ on September 4, 2024 and sell it today you would earn a total of 31.00 from holding Global X NASDAQ or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Global X NASDAQ vs. FIVR
Performance |
| Timeline |
| Global X NASDAQ |
| FIVR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and FIVR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and FIVR
The main advantage of trading using opposite Global X and FIVR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, FIVR 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 FIVR will offset losses from the drop in FIVR's long position.| Global X vs. SMI 3Fourteen Full Cycle | Global X vs. UBS AG London | Global X vs. Global X SP | Global X vs. FundX ETF |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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