Correlation Between Global X and DGA Core
Can any of the company-specific risk be diversified away by investing in both Global X and DGA Core 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 DGA Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Data and DGA Core Plus, you can compare the effects of market volatilities on Global X and DGA Core 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 DGA Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and DGA Core.
Diversification Opportunities for Global X and DGA Core
Very poor diversification
The 3 months correlation between Global and DGA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Global X Data and DGA Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DGA Core Plus 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 Data are associated (or correlated) with DGA Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DGA Core Plus has no effect on the direction of Global X i.e., Global X and DGA Core go up and down completely randomly.
Pair Corralation between Global X and DGA Core
Given the investment horizon of 90 days Global X Data is expected to generate 5.16 times more return on investment than DGA Core. However, Global X is 5.16 times more volatile than DGA Core Plus. It trades about 0.15 of its potential returns per unit of risk. DGA Core Plus is currently generating about 0.11 per unit of risk. If you would invest 1,833 in Global X Data on September 3, 2025 and sell it today you would earn a total of 258.00 from holding Global X Data or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Data vs. DGA Core Plus
Performance |
| Timeline |
| Global X Data |
| DGA Core Plus |
Global X and DGA Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and DGA Core
The main advantage of trading using opposite Global X and DGA Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, DGA Core 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 DGA Core will offset losses from the drop in DGA Core's long position.| Global X vs. Strategy Shares | Global X vs. Freedom Day Dividend | Global X vs. Franklin Templeton ETF | Global X vs. iShares MSCI China |
| DGA Core vs. Draco Evolution AI | DGA Core vs. ProShares VIX Mid Term | DGA Core vs. ProShares VIX Short Term | DGA Core vs. Nelson Select ETF |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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