Correlation Between Rbb Fund and Global X

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

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

Diversification Opportunities for Rbb Fund and Global X

0.67

Correlation Coefficient

Rbb Fund  Global X

Poor diversification

The 3 months correlation between Rbb and Global is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund and Global X Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Short and Rbb Fund 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 Rbb Fund 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 Short has no effect on the direction of Rbb Fund i.e., Rbb Fund and Global X go up and down completely randomly.

Pair Corralation between Rbb Fund and Global X

Given the investment horizon of 90 days Rbb Fund is expected to generate 1.84 times more return on investment than Global X. However, Rbb Fund is 1.84 times more volatile than Global X Short Term. It trades about 0.14 of its potential returns per unit of risk. Global X Short Term is currently generating about 0.1 per unit of risk. If you would invest  4,629  in Rbb Fund on September 12, 2024 and sell it today you would earn a total of  189.00  from holding Rbb Fund or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	26.21%
Values	Daily Returns

Rbb Fund   vs.  Global X Short Term

Rbb Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rbb Fund has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Rbb Fund is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Global X Short

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Short Term are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Global X is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Rbb Fund and Global X

The main advantage of trading using opposite Rbb Fund and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund 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 Rbb Fund and Global X Short Term 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.