Correlation Between Global X and LifeGoal Investments
Can any of the company-specific risk be diversified away by investing in both Global X and LifeGoal Investments 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 LifeGoal Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X SP and LifeGoal Investments, you can compare the effects of market volatilities on Global X and LifeGoal Investments 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 LifeGoal Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and LifeGoal Investments.
Diversification Opportunities for Global X and LifeGoal Investments
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and LifeGoal is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Global X SP and LifeGoal Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeGoal Investments 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 SP are associated (or correlated) with LifeGoal Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeGoal Investments has no effect on the direction of Global X i.e., Global X and LifeGoal Investments go up and down completely randomly.
Pair Corralation between Global X and LifeGoal Investments
If you would invest 4,182 in Global X SP on October 21, 2024 and sell it today you would earn a total of 66.00 from holding Global X SP or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Global X SP vs. LifeGoal Investments
Performance |
| Timeline |
| Global X SP |
| LifeGoal Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and LifeGoal Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and LifeGoal Investments
The main advantage of trading using opposite Global X and LifeGoal Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, LifeGoal Investments 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 LifeGoal Investments will offset losses from the drop in LifeGoal Investments' long position.| Global X vs. Global X Russell | Global X vs. Global X NASDAQ | Global X vs. NEOS ETF Trust | Global X vs. JPMorgan Equity Premium |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |