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 MSCI, 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 MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MSCI 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 MSCI 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  1,902  in Global X MSCI on December 28, 2024 and sell it today you would earn a total of  405.00  from holding Global X MSCI or generate 21.29% 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 MSCI

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 MSCI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X MSCI are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Global X reported solid returns over the last few months and may actually be approaching a breakup point.

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 MSCI 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.