Correlation Between CI Galaxy and Global X

Can any of the company-specific risk be diversified away by investing in both CI Galaxy 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 CI Galaxy and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CI Galaxy Blockchain and Global X Robotics, you can compare the effects of market volatilities on CI Galaxy 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 CI Galaxy with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Galaxy and Global X.

Diversification Opportunities for CI Galaxy and Global X

0.84

Correlation Coefficient

CI Galaxy  Global X

Very poor diversification

The 3 months correlation between CBCX and Global is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CI Galaxy Blockchain and Global X Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Robotics and CI Galaxy 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 CI Galaxy Blockchain 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 Robotics has no effect on the direction of CI Galaxy i.e., CI Galaxy and Global X go up and down completely randomly.

Pair Corralation between CI Galaxy and Global X

Assuming the 90 days trading horizon CI Galaxy Blockchain is expected to under-perform the Global X. In addition to that, CI Galaxy is 2.85 times more volatile than Global X Robotics. It trades about -0.11 of its total potential returns per unit of risk. Global X Robotics is currently generating about -0.11 per unit of volatility. If you would invest  3,082  in Global X Robotics on December 30, 2024 and sell it today you would lose (332.00) from holding Global X Robotics or give up 10.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

CI Galaxy Blockchain  vs.  Global X Robotics

CI Galaxy Blockchain

Risk-Adjusted Performance

Very Weak

Over the last 90 days CI Galaxy Blockchain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Global X Robotics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with CI Galaxy and Global X

The main advantage of trading using opposite CI Galaxy and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Galaxy 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.

The idea behind CI Galaxy Blockchain and Global X Robotics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.