Correlation Between Meet Kevin and Global X

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

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

Diversification Opportunities for Meet Kevin and Global X

-0.35

Correlation Coefficient

Meet Kevin  Global X

Very good diversification

The 3 months correlation between Meet and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Meet Kevin and Global X Disruptive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Disruptive and Meet Kevin 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 The Meet Kevin 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 Disruptive has no effect on the direction of Meet Kevin i.e., Meet Kevin and Global X go up and down completely randomly.

Pair Corralation between Meet Kevin and Global X

Allowing for the 90-day total investment horizon Meet Kevin is expected to generate 3.72 times less return on investment than Global X. But when comparing it to its historical volatility, The Meet Kevin is 1.12 times less risky than Global X. It trades about 0.03 of its potential returns per unit of risk. Global X Disruptive is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,445  in Global X Disruptive on December 27, 2024 and sell it today you would earn a total of  121.00  from holding Global X Disruptive or generate 8.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.67%
Values	Daily Returns

The Meet Kevin  vs.  Global X Disruptive

Meet Kevin

Risk-Adjusted Performance

Weak

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

Global X Disruptive

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Disruptive are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Meet Kevin and Global X

The main advantage of trading using opposite Meet Kevin and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meet Kevin 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 The Meet Kevin and Global X Disruptive 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.