Correlation Between Rubicon Organics and Global X
Can any of the company-specific risk be diversified away by investing in both Rubicon Organics 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 Rubicon Organics and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubicon Organics and Global X Active, you can compare the effects of market volatilities on Rubicon Organics 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 Rubicon Organics with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Organics and Global X.
Diversification Opportunities for Rubicon Organics and Global X
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubicon and Global is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Organics 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 Rubicon Organics 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 Rubicon Organics 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 Rubicon Organics i.e., Rubicon Organics and Global X go up and down completely randomly.
Pair Corralation between Rubicon Organics and Global X
Assuming the 90 days trading horizon Rubicon Organics is expected to under-perform the Global X. In addition to that, Rubicon Organics is 13.28 times more volatile than Global X Active. It trades about -0.09 of its total potential returns per unit of risk. Global X Active is currently generating about 0.14 per unit of volatility. If you would invest 927.00 in Global X Active on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Global X Active or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubicon Organics vs. Global X Active
Performance |
| Timeline |
| Rubicon Organics |
| Global X Active |
Rubicon Organics and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubicon Organics and Global X
The main advantage of trading using opposite Rubicon Organics and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubicon Organics 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.| Rubicon Organics vs. iShares Canadian HYBrid | Rubicon Organics vs. Brompton European Dividend | Rubicon Organics vs. Solar Alliance Energy | Rubicon Organics vs. PHN Multi Style All Cap |
| Global X vs. iShares SPTSX Canadian | Global X vs. Global X Active | Global X vs. BMO Covered Call | Global X vs. Forstrong Global Income |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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