Correlation Between GREI and Global X

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

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

Diversification Opportunities for GREI and Global X

0.0

Correlation Coefficient

GREI  Global X

Pay attention - limited upside

The 3 months correlation between GREI and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GREI and Global X Cybersecurity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Cybersecurity and GREI 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 GREI 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 Cybersecurity has no effect on the direction of GREI i.e., GREI and Global X go up and down completely randomly.

Pair Corralation between GREI and Global X

If you would invest  3,219  in Global X Cybersecurity on December 28, 2024 and sell it today you would earn a total of  131.00  from holding Global X Cybersecurity or generate 4.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GREI  vs.  Global X Cybersecurity

GREI

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, GREI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Global X Cybersecurity

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Cybersecurity are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Global X is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GREI and Global X

The main advantage of trading using opposite GREI and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREI 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 GREI and Global X Cybersecurity 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 CEOs Directory module to screen CEOs from public companies around the world.