Correlation Between Loncar Cancer and Global X

Can any of the company-specific risk be diversified away by investing in both Loncar Cancer 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 Loncar Cancer and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Loncar Cancer Immunotherapy and Global X Genomics, you can compare the effects of market volatilities on Loncar Cancer 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 Loncar Cancer with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loncar Cancer and Global X.

Diversification Opportunities for Loncar Cancer and Global X

0.75

Correlation Coefficient

Loncar Cancer  Global X

Poor diversification

The 3 months correlation between Loncar and Global is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Loncar Cancer Immunotherapy and Global X Genomics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Genomics and Loncar Cancer 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 Loncar Cancer Immunotherapy 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 Genomics has no effect on the direction of Loncar Cancer i.e., Loncar Cancer and Global X go up and down completely randomly.

Pair Corralation between Loncar Cancer and Global X

Given the investment horizon of 90 days Loncar Cancer Immunotherapy is expected to under-perform the Global X. In addition to that, Loncar Cancer is 1.21 times more volatile than Global X Genomics. It trades about -0.19 of its total potential returns per unit of risk. Global X Genomics is currently generating about -0.13 per unit of volatility. If you would invest  1,132  in Global X Genomics on September 20, 2024 and sell it today you would lose (161.00) from holding Global X Genomics or give up 14.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Loncar Cancer Immunotherapy  vs.  Global X Genomics

Loncar Cancer Immuno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Loncar Cancer Immunotherapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Etf's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the ETF retail investors.

Global X Genomics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Loncar Cancer and Global X

The main advantage of trading using opposite Loncar Cancer and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loncar Cancer 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.

The idea behind Loncar Cancer Immunotherapy and Global X Genomics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.