Correlation Between Global X and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both Global X and Innovator Capital 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 Innovator Capital 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 Innovator Capital Management, you can compare the effects of market volatilities on Global X and Innovator Capital 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 Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Innovator Capital.
Diversification Opportunities for Global X and Innovator Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Innovator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital 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 Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of Global X i.e., Global X and Innovator Capital go up and down completely randomly.
Pair Corralation between Global X and Innovator Capital
If you would invest 2,454 in Global X Funds on November 28, 2024 and sell it today you would earn a total of 1,747 from holding Global X Funds or generate 71.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X Funds vs. Innovator Capital Management
Performance |
| Timeline |
| Global X Funds |
| Innovator Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Global X and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Innovator Capital
The main advantage of trading using opposite Global X and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Innovator Capital 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 Innovator Capital will offset losses from the drop in Innovator Capital's long position.| Global X vs. FT Vest Equity | Global X vs. Zillow Group Class | Global X vs. Northern Lights | Global X vs. VanEck Vectors Moodys |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |