Correlation Between Global X and EXCO Resources
Can any of the company-specific risk be diversified away by investing in both Global X and EXCO Resources 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 X and EXCO Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Video and EXCO Resources, you can compare the effects of market volatilities on Global X and EXCO Resources 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 X with a short position of EXCO Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and EXCO Resources.
Diversification Opportunities for Global X and EXCO Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and EXCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Video and EXCO Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXCO Resources and Global X 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 X Video are associated (or correlated) with EXCO Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXCO Resources has no effect on the direction of Global X i.e., Global X and EXCO Resources go up and down completely randomly.
Pair Corralation between Global X and EXCO Resources
If you would invest (100.00) in EXCO Resources on January 26, 2024 and sell it today you would earn a total of 100.00 from holding EXCO Resources or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global X Video vs. EXCO Resources
Performance |
| Timeline |
| Global X Video |
| EXCO Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and EXCO Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and EXCO Resources
The main advantage of trading using opposite Global X and EXCO Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, EXCO Resources 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 EXCO Resources will offset losses from the drop in EXCO Resources' long position.| Global X vs. VanEck Video Gaming | Global X vs. Roundhill Video Games | Global X vs. Wedbush ETFMG Video | Global X vs. First Trust S Network |
| EXCO Resources vs. Space Communication | EXCO Resources vs. Pinterest | EXCO Resources vs. Sun Country Airlines | EXCO Resources vs. Ryanair Holdings PLC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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