Correlation Between Global X and WEEK
Can any of the company-specific risk be diversified away by investing in both Global X and WEEK 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 WEEK 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 WEEK, you can compare the effects of market volatilities on Global X and WEEK 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 WEEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and WEEK.
Diversification Opportunities for Global X and WEEK
Poor diversification
The 3 months correlation between Global and WEEK is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and WEEK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEEK 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 WEEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEEK has no effect on the direction of Global X i.e., Global X and WEEK go up and down completely randomly.
Pair Corralation between Global X and WEEK
Given the investment horizon of 90 days Global X Funds is expected to generate 5.1 times more return on investment than WEEK. However, Global X is 5.1 times more volatile than WEEK. It trades about 0.16 of its potential returns per unit of risk. WEEK is currently generating about 0.39 per unit of risk. If you would invest 4,912 in Global X Funds on September 1, 2025 and sell it today you would earn a total of 95.00 from holding Global X Funds or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. WEEK
Performance |
| Timeline |
| Global X Funds |
| WEEK |
Global X and WEEK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and WEEK
The main advantage of trading using opposite Global X and WEEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, WEEK 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 WEEK will offset losses from the drop in WEEK's long position.| Global X vs. Vanguard 0 3 Month | Global X vs. Texas Capital Funds | Global X vs. Vanguard Ultra Short Treasury | Global X vs. WEEK |
| WEEK vs. Vanguard 0 3 Month | WEEK vs. Global X Funds | WEEK vs. Texas Capital Funds | WEEK vs. Vanguard Ultra Short Treasury |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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