Correlation Between Strategy Shares and Global X
Can any of the company-specific risk be diversified away by investing in both Strategy Shares 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 Strategy Shares and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategy Shares and Global X CleanTech, you can compare the effects of market volatilities on Strategy Shares 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 Strategy Shares with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategy Shares and Global X.
Diversification Opportunities for Strategy Shares and Global X
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Strategy and Global is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Strategy Shares and Global X CleanTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X CleanTech and Strategy Shares 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 Strategy Shares 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 CleanTech has no effect on the direction of Strategy Shares i.e., Strategy Shares and Global X go up and down completely randomly.
Pair Corralation between Strategy Shares and Global X
Given the investment horizon of 90 days Strategy Shares is expected to generate 15.28 times less return on investment than Global X. But when comparing it to its historical volatility, Strategy Shares is 11.17 times less risky than Global X. It trades about 0.12 of its potential returns per unit of risk. Global X CleanTech is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4,268 in Global X CleanTech on August 30, 2025 and sell it today you would earn a total of 1,197 from holding Global X CleanTech or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategy Shares vs. Global X CleanTech
Performance |
| Timeline |
| Strategy Shares |
| Global X CleanTech |
Strategy Shares and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategy Shares and Global X
The main advantage of trading using opposite Strategy Shares and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategy Shares 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.| Strategy Shares vs. Freedom Day Dividend | Strategy Shares vs. Franklin Templeton ETF | Strategy Shares vs. iShares MSCI China | Strategy Shares vs. YieldMax Short NVDA |
| Global X vs. Strategy Shares | Global X vs. Freedom Day Dividend | Global X vs. Franklin Templeton ETF | Global X vs. iShares MSCI China |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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