Correlation Between Via Renewables and Global X

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

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

Diversification Opportunities for Via Renewables and Global X

-0.9

Correlation Coefficient

Via Renewables  Global X

Pay attention - limited upside

The 3 months correlation between Via and Global is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables 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 Via Renewables 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 Via Renewables 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 Via Renewables i.e., Via Renewables and Global X go up and down completely randomly.

Pair Corralation between Via Renewables and Global X

Assuming the 90 days horizon Via Renewables is expected to generate 0.83 times more return on investment than Global X. However, Via Renewables is 1.2 times less risky than Global X. It trades about 0.49 of its potential returns per unit of risk. Global X SuperDividend is currently generating about -0.14 per unit of risk. If you would invest  2,148  in Via Renewables on October 5, 2024 and sell it today you would earn a total of  155.00  from holding Via Renewables or generate 7.22% return on investment over 90 days.

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

Via Renewables  vs.  Global X SuperDividend

Via Renewables

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Via Renewables are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Via Renewables reported 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 Via Renewables and Global X

The main advantage of trading using opposite Via Renewables and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Renewables 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 Via Renewables 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.

Check out your portfolio center.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.