Correlation Between Global X and Bon-Ton Stores
Can any of the company-specific risk be diversified away by investing in both Global X and Bon-Ton Stores 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 Bon-Ton Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and The Bon Ton Stores, you can compare the effects of market volatilities on Global X and Bon-Ton Stores 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 Bon-Ton Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Bon-Ton Stores.
Diversification Opportunities for Global X and Bon-Ton Stores
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Bon-Ton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and The Bon Ton Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bon-Ton Stores 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 Funds are associated (or correlated) with Bon-Ton Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bon-Ton Stores has no effect on the direction of Global X i.e., Global X and Bon-Ton Stores go up and down completely randomly.
Pair Corralation between Global X and Bon-Ton Stores
If you would invest (100.00) in The Bon Ton Stores on January 26, 2024 and sell it today you would earn a total of 100.00 from holding The Bon Ton Stores 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 Funds vs. The Bon Ton Stores
Performance |
| Timeline |
| Global X Funds |
| Bon-Ton Stores |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and Bon-Ton Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Bon-Ton Stores
The main advantage of trading using opposite Global X and Bon-Ton Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Bon-Ton Stores 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 Bon-Ton Stores will offset losses from the drop in Bon-Ton Stores' long position.| Global X vs. Vanguard Total Stock | Global X vs. SPDR SP 500 | Global X vs. iShares Core SP | Global X vs. Vanguard Total Bond |
| Bon-Ton Stores vs. Discover Financial Services | Bon-Ton Stores vs. Upper Street Marketing | Bon-Ton Stores vs. KeyCorp | Bon-Ton Stores vs. Encore Capital Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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