Correlation Between Freedom Day and Global X
Can any of the company-specific risk be diversified away by investing in both Freedom Day 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 Freedom Day and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Day Dividend and Global X Funds, you can compare the effects of market volatilities on Freedom Day 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 Freedom Day with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Day and Global X.
Diversification Opportunities for Freedom Day and Global X
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Freedom and Global is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Day Dividend and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Freedom Day 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 Freedom Day Dividend 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 Funds has no effect on the direction of Freedom Day i.e., Freedom Day and Global X go up and down completely randomly.
Pair Corralation between Freedom Day and Global X
Given the investment horizon of 90 days Freedom Day Dividend is expected to generate 0.76 times more return on investment than Global X. However, Freedom Day Dividend is 1.31 times less risky than Global X. It trades about 0.03 of its potential returns per unit of risk. Global X Funds is currently generating about 0.0 per unit of risk. If you would invest 3,486 in Freedom Day Dividend on September 10, 2025 and sell it today you would earn a total of 38.00 from holding Freedom Day Dividend or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Day Dividend vs. Global X Funds
Performance |
| Timeline |
| Freedom Day Dividend |
| Global X Funds |
Freedom Day and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Day and Global X
The main advantage of trading using opposite Freedom Day and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Day 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.| Freedom Day vs. WisdomTree Global High | Freedom Day vs. The Advisors Inner | Freedom Day vs. First Trust Intl | Freedom Day vs. 2023 EFT Series |
| Global X vs. iShares MSCI Europe | Global X vs. iShares Financials ETF | Global X vs. Goldman Sachs ActiveBeta | Global X vs. Dimensional International High |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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