Correlation Between Kurv Yield and Global X

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

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

Diversification Opportunities for Kurv Yield and Global X

0.8

Correlation Coefficient

Kurv Yield  Global X

Very poor diversification

The 3 months correlation between Kurv and Global is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kurv Yield Premium and Global X SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X SP and Kurv Yield 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 Kurv Yield Premium 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 SP has no effect on the direction of Kurv Yield i.e., Kurv Yield and Global X go up and down completely randomly.

Pair Corralation between Kurv Yield and Global X

Given the investment horizon of 90 days Kurv Yield Premium is expected to generate 9.01 times more return on investment than Global X. However, Kurv Yield is 9.01 times more volatile than Global X SP. It trades about 0.14 of its potential returns per unit of risk. Global X SP is currently generating about 0.24 per unit of risk. If you would invest  2,145  in Kurv Yield Premium on September 5, 2024 and sell it today you would earn a total of  668.00  from holding Kurv Yield Premium or generate 31.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Kurv Yield Premium  vs.  Global X SP

Kurv Yield Premium

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Yield Premium are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady essential indicators, Kurv Yield reported solid returns over the last few months and may actually be approaching a breakup point.

Global X SP

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X SP are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Global X is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Kurv Yield and Global X

The main advantage of trading using opposite Kurv Yield and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kurv Yield 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 Kurv Yield Premium and Global X SP 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.