Correlation Between Global X and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both Global X and Strategy Shares 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 Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Guru and Strategy Shares NewfoundReSolve, you can compare the effects of market volatilities on Global X and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Strategy Shares.
Diversification Opportunities for Global X and Strategy Shares
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Strategy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Global X Guru and Strategy Shares NewfoundReSolv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares Newf 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 Guru are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares Newf has no effect on the direction of Global X i.e., Global X and Strategy Shares go up and down completely randomly.
Pair Corralation between Global X and Strategy Shares
Given the investment horizon of 90 days Global X Guru is expected to generate 1.27 times more return on investment than Strategy Shares. However, Global X is 1.27 times more volatile than Strategy Shares NewfoundReSolve. It trades about 0.13 of its potential returns per unit of risk. Strategy Shares NewfoundReSolve is currently generating about 0.1 per unit of risk. If you would invest 5,823 in Global X Guru on September 4, 2025 and sell it today you would earn a total of 452.00 from holding Global X Guru or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Guru vs. Strategy Shares NewfoundReSolv
Performance |
| Timeline |
| Global X Guru |
| Strategy Shares Newf |
Global X and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Strategy Shares
The main advantage of trading using opposite Global X and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' 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 |
| Strategy Shares vs. Series Portfolios Trust | Strategy Shares vs. First Trust Multi Asset | Strategy Shares vs. Collaborative Investment Series | Strategy Shares vs. Northern Lights |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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