Correlation Between Global X and VanEck Green
Can any of the company-specific risk be diversified away by investing in both Global X and VanEck Green 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 VanEck Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Autonomous and VanEck Green Bond, you can compare the effects of market volatilities on Global X and VanEck Green 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 VanEck Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and VanEck Green.
Diversification Opportunities for Global X and VanEck Green
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and VanEck is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Global X Autonomous and VanEck Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Green Bond 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 Autonomous are associated (or correlated) with VanEck Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Green Bond has no effect on the direction of Global X i.e., Global X and VanEck Green go up and down completely randomly.
Pair Corralation between Global X and VanEck Green
If you would invest (100.00) in Global X Autonomous on January 28, 2024 and sell it today you would earn a total of 100.00 from holding Global X Autonomous or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.0% |
Values | Daily Returns |
Global X Autonomous vs. VanEck Green Bond
Performance |
Timeline |
Global X Autonomous |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck Green Bond |
Global X and VanEck Green Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global X and VanEck Green
The main advantage of trading using opposite Global X and VanEck Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, VanEck Green 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 VanEck Green will offset losses from the drop in VanEck Green's long position.Global X vs. iShares Self Driving EV | Global X vs. KraneShares Electric Vehicles | Global X vs. Global X Lithium | Global X vs. SPDR SP Kensho |
VanEck Green vs. First Trust California | VanEck Green vs. Great Southern Bancorp | VanEck Green vs. VanEck China Bond | VanEck Green vs. First Community Bancshares |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |