Correlation Between Teladoc Health and Global X
Can any of the company-specific risk be diversified away by investing in both Teladoc Health 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 Teladoc Health and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladoc Health and Global X Funds, you can compare the effects of market volatilities on Teladoc Health 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 Teladoc Health with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladoc Health and Global X.
Diversification Opportunities for Teladoc Health and Global X
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teladoc and Global is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Teladoc Health and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Teladoc Health 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 Teladoc Health 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 Funds has no effect on the direction of Teladoc Health i.e., Teladoc Health and Global X go up and down completely randomly.
Pair Corralation between Teladoc Health and Global X
Assuming the 90 days trading horizon Teladoc Health is expected to generate 3.99 times more return on investment than Global X. However, Teladoc Health is 3.99 times more volatile than Global X Funds. It trades about 0.12 of its potential returns per unit of risk. Global X Funds is currently generating about 0.16 per unit of risk. If you would invest 190.00 in Teladoc Health on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Teladoc Health or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladoc Health vs. Global X Funds
Performance |
| Timeline |
| Teladoc Health |
| Global X Funds |
Teladoc Health and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladoc Health and Global X
The main advantage of trading using opposite Teladoc Health and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladoc Health 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.| Teladoc Health vs. Fundo Investimento Imobiliario | Teladoc Health vs. LESTE FDO INV | Teladoc Health vs. Fras le SA | Teladoc Health vs. Western Digital |
| Global X vs. Taiwan Semiconductor Manufacturing | Global X vs. Apple Inc | Global X vs. Alibaba Group Holding | Global X vs. Microsoft |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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