Correlation Between Evolve Active and Global X

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

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

Diversification Opportunities for Evolve Active and Global X

0.99

Correlation Coefficient

Evolve Active  Global X

No risk reduction

The 3 months correlation between Evolve and Global is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Evolve Active Canadian and Global X Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Active and Evolve Active 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 Evolve Active Canadian 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 Active has no effect on the direction of Evolve Active i.e., Evolve Active and Global X go up and down completely randomly.

Pair Corralation between Evolve Active and Global X

Assuming the 90 days trading horizon Evolve Active is expected to generate 1.4 times less return on investment than Global X. In addition to that, Evolve Active is 1.07 times more volatile than Global X Active. It trades about 0.37 of its total potential returns per unit of risk. Global X Active is currently generating about 0.56 per unit of volatility. If you would invest  894.00  in Global X Active on April 24, 2025 and sell it today you would earn a total of  106.00  from holding Global X Active or generate 11.86% return on investment over 90 days.

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

Evolve Active Canadian  vs.  Global X Active

Evolve Active Canadian

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Active Canadian are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Evolve Active may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Global X Active

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Active are ranked lower than 43 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Evolve Active and Global X

The main advantage of trading using opposite Evolve Active and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolve Active 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 Evolve Active Canadian and Global X Active 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.