Correlation Between Retireful and Global X

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

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

Diversification Opportunities for Retireful and Global X

-0.13

Correlation Coefficient

Retireful  Global X

Good diversification

The 3 months correlation between Retireful and Global is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Retireful and Global X Adaptive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Adaptive and Retireful 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 Retireful 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 Adaptive has no effect on the direction of Retireful i.e., Retireful and Global X go up and down completely randomly.

Pair Corralation between Retireful and Global X

Given the investment horizon of 90 days Retireful is expected to generate 0.95 times more return on investment than Global X. However, Retireful is 1.05 times less risky than Global X. It trades about 0.34 of its potential returns per unit of risk. Global X Adaptive is currently generating about 0.24 per unit of risk. If you would invest  2,070  in Retireful on September 5, 2024 and sell it today you would earn a total of  97.00  from holding Retireful or generate 4.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	31.25%
Values	Daily Returns

Retireful  vs.  Global X Adaptive

Retireful

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days Retireful has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unsteady technical indicators, Retireful reported solid returns over the last few months and may actually be approaching a breakup point.

Global X Adaptive

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Adaptive are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Retireful and Global X

The main advantage of trading using opposite Retireful and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retireful 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 Retireful and Global X Adaptive 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.