Correlation Between Global X and TD Q

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

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

Diversification Opportunities for Global X and TD Q

0.4

Correlation Coefficient

Global X  TD Q

Very weak diversification

The 3 months correlation between Global and TQGD is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and TD Q Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Q Global 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 Active are associated (or correlated) with TD Q. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Q Global has no effect on the direction of Global X i.e., Global X and TD Q go up and down completely randomly.

Pair Corralation between Global X and TD Q

Assuming the 90 days trading horizon Global X is expected to generate 42.43 times less return on investment than TD Q. In addition to that, Global X is 1.02 times more volatile than TD Q Global. It trades about 0.01 of its total potential returns per unit of risk. TD Q Global is currently generating about 0.31 per unit of volatility. If you would invest  2,044  in TD Q Global on April 24, 2025 and sell it today you would earn a total of  77.00  from holding TD Q Global or generate 3.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Global X Active  vs.  TD Q Global

Global X Active

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Active are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Global X is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

TD Q Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TD Q Global are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, TD Q may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Global X and TD Q

The main advantage of trading using opposite Global X and TD Q positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, TD Q 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 TD Q will offset losses from the drop in TD Q's long position.

The idea behind Global X Active and TD Q Global 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.