Correlation Between Virtus ETF and Global X
Can any of the company-specific risk be diversified away by investing in both Virtus ETF 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 Virtus ETF and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus ETF Trust and Global X AgTech, you can compare the effects of market volatilities on Virtus ETF 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 Virtus ETF with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and Global X.
Diversification Opportunities for Virtus ETF and Global X
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Global is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and Global X AgTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X AgTech and Virtus ETF 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 Virtus ETF Trust 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 AgTech has no effect on the direction of Virtus ETF i.e., Virtus ETF and Global X go up and down completely randomly.
Pair Corralation between Virtus ETF and Global X
Given the investment horizon of 90 days Virtus ETF is expected to generate 63.08 times less return on investment than Global X. But when comparing it to its historical volatility, Virtus ETF Trust is 13.02 times less risky than Global X. It trades about 0.07 of its potential returns per unit of risk. Global X AgTech is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Global X AgTech on October 23, 2024 and sell it today you would earn a total of 73.00 from holding Global X AgTech or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Virtus ETF Trust vs. Global X AgTech
Performance |
| Timeline |
| Virtus ETF Trust |
| Global X AgTech |
Virtus ETF and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and Global X
The main advantage of trading using opposite Virtus ETF and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF 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.| Virtus ETF vs. Franklin Liberty Senior | Virtus ETF vs. Virtus Newfleet Multi Sector | Virtus ETF vs. Pacer Pacific Asset | Virtus ETF vs. JPMorgan USD Emerging |
| Global X vs. Global X Clean | Global X vs. Global X Hydrogen | Global X vs. Global X Renewable | Global X vs. Global X Wind |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |