Correlation Between Global X and Golden Ocean
Can any of the company-specific risk be diversified away by investing in both Global X and Golden Ocean 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 Golden Ocean 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 Golden Ocean Group, you can compare the effects of market volatilities on Global X and Golden Ocean 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 Golden Ocean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Golden Ocean.
Diversification Opportunities for Global X and Golden Ocean
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Golden is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Golden Ocean Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Ocean Group 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 Golden Ocean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Ocean Group has no effect on the direction of Global X i.e., Global X and Golden Ocean go up and down completely randomly.
Pair Corralation between Global X and Golden Ocean
Given the investment horizon of 90 days Global X is expected to generate 1.43 times less return on investment than Golden Ocean. But when comparing it to its historical volatility, Global X Funds is 3.98 times less risky than Golden Ocean. It trades about 0.12 of its potential returns per unit of risk. Golden Ocean Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 770.00 in Golden Ocean Group on June 6, 2025 and sell it today you would earn a total of 28.00 from holding Golden Ocean Group or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.25% |
| Values | Daily Returns |
Global X Funds vs. Golden Ocean Group
Performance |
| Timeline |
| Global X Funds |
| Golden Ocean Group |
Risk-Adjusted Performance
Soft
Weak | Strong |
Global X and Golden Ocean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Golden Ocean
The main advantage of trading using opposite Global X and Golden Ocean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Golden Ocean 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 Golden Ocean will offset losses from the drop in Golden Ocean's long position.| Global X vs. Danaos | Global X vs. Diana Shipping | Global X vs. Euroseas | Global X vs. Genco Shipping Trading |
| Golden Ocean vs. Genco Shipping Trading | Golden Ocean vs. Global X Funds | Golden Ocean vs. Global Ship Lease | Golden Ocean vs. Diana Shipping |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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