Correlation Between Global Dividend and Global X

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

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

Diversification Opportunities for Global Dividend and Global X

0.0

Correlation Coefficient

Global Dividend  Global X

Pay attention - limited upside

The 3 months correlation between Global and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Dividend and and Global X Mexico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Mexico and Global Dividend 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 Global Dividend and 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 Mexico has no effect on the direction of Global Dividend i.e., Global Dividend and Global X go up and down completely randomly.

Pair Corralation between Global Dividend and Global X

If you would invest  618.00  in Global Dividend and on December 29, 2024 and sell it today you would earn a total of  1.00  from holding Global Dividend and or generate 0.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Global Dividend and  vs.  Global X Mexico

Global Dividend

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Dividend and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Global Dividend is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Global X Mexico

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Mexico has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Global X is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Global Dividend and Global X

The main advantage of trading using opposite Global Dividend and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Dividend 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 Global Dividend and and Global X Mexico 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.