Correlation Between YUMY and Global X
Can any of the company-specific risk be diversified away by investing in both YUMY 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 YUMY and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YUMY and Global X AgTech, you can compare the effects of market volatilities on YUMY 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 YUMY with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of YUMY and Global X.
Diversification Opportunities for YUMY and Global X
Very good diversification
The 3 months correlation between YUMY and Global is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding YUMY 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 YUMY 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 YUMY 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 YUMY i.e., YUMY and Global X go up and down completely randomly.
Pair Corralation between YUMY and Global X
Given the investment horizon of 90 days YUMY is expected to generate 0.77 times more return on investment than Global X. However, YUMY is 1.3 times less risky than Global X. It trades about 0.01 of its potential returns per unit of risk. Global X AgTech is currently generating about -0.05 per unit of risk. If you would invest 1,771 in YUMY on August 31, 2024 and sell it today you would earn a total of 7.00 from holding YUMY or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 13.45% |
| Values | Daily Returns |
YUMY vs. Global X AgTech
Performance |
| Timeline |
| YUMY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X AgTech |
YUMY and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YUMY and Global X
The main advantage of trading using opposite YUMY and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YUMY 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.| YUMY vs. Global X AgTech | YUMY vs. VegTech Plant based Innovation | YUMY vs. VanEck Vectors ETF | YUMY vs. First Trust Nasdaq |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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