Correlation Between Howard Hughes and Global X

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

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

Diversification Opportunities for Howard Hughes and Global X

-0.45

Correlation Coefficient

Howard Hughes  Global X

Very good diversification

The 3 months correlation between Howard and Global is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Howard Hughes and Global X SuperDividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SuperDividend and Howard Hughes 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 Howard Hughes 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 SuperDividend has no effect on the direction of Howard Hughes i.e., Howard Hughes and Global X go up and down completely randomly.

Pair Corralation between Howard Hughes and Global X

Considering the 90-day investment horizon Howard Hughes is expected to generate 1.66 times more return on investment than Global X. However, Howard Hughes is 1.66 times more volatile than Global X SuperDividend. It trades about 0.01 of its potential returns per unit of risk. Global X SuperDividend is currently generating about 0.02 per unit of risk. If you would invest  7,281  in Howard Hughes on September 20, 2024 and sell it today you would earn a total of  357.00  from holding Howard Hughes or generate 4.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Howard Hughes  vs.  Global X SuperDividend

Howard Hughes

Risk-Adjusted Performance

0 of 100

Very Weak

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

Global X SuperDividend

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X SuperDividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Howard Hughes and Global X

The main advantage of trading using opposite Howard Hughes and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Howard Hughes 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 Howard Hughes and Global X SuperDividend 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.