Correlation Between SPACE and Global X

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

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

Diversification Opportunities for SPACE and Global X

-0.47

Correlation Coefficient

SPACE  Global X

Very good diversification

The 3 months correlation between SPACE and Global is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SPACE 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 SPACE 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 SPACE 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 SPACE i.e., SPACE and Global X go up and down completely randomly.

Pair Corralation between SPACE and Global X

Assuming the 90 days horizon SPACE is expected to generate 187.33 times more return on investment than Global X. However, SPACE is 187.33 times more volatile than Global X SuperDividend. It trades about 0.18 of its potential returns per unit of risk. Global X SuperDividend is currently generating about 0.01 per unit of risk. If you would invest  0.00  in SPACE on October 5, 2024 and sell it today you would earn a total of  47.00  from holding SPACE or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	61.54%
Values	Daily Returns

SPACE  vs.  Global X SuperDividend

SPACE

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SPACE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, SPACE exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 forward indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the fund sophisticated investors.

Pair Trading with SPACE and Global X

The main advantage of trading using opposite SPACE and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE 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 SPACE 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.