Correlation Between GRNR and Global X

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

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

Diversification Opportunities for GRNR and Global X

0.0

Correlation Coefficient

GRNR  Global X

Pay attention - limited upside

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

Pair Corralation between GRNR and Global X

If you would invest  1,082  in Global X Wind on December 19, 2024 and sell it today you would earn a total of  80.00  from holding Global X Wind or generate 7.39% return on investment over 90 days.

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

GRNR  vs.  Global X Wind

GRNR

Risk-Adjusted Performance

Very Weak

Over the last 90 days GRNR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, GRNR is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Global X Wind

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Wind are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GRNR and Global X

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

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.