Correlation Between Global X and Evolve Cyber

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

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

Diversification Opportunities for Global X and Evolve Cyber

0.92

Correlation Coefficient

Global X  Evolve Cyber

Almost no diversification

The 3 months correlation between Global and Evolve is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Global X Robotics and Evolve Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Cyber Security 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 Robotics are associated (or correlated) with Evolve Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Cyber Security has no effect on the direction of Global X i.e., Global X and Evolve Cyber go up and down completely randomly.

Pair Corralation between Global X and Evolve Cyber

Assuming the 90 days trading horizon Global X Robotics is expected to generate 1.02 times more return on investment than Evolve Cyber. However, Global X is 1.02 times more volatile than Evolve Cyber Security. It trades about 0.29 of its potential returns per unit of risk. Evolve Cyber Security is currently generating about 0.2 per unit of risk. If you would invest  2,457  in Global X Robotics on April 20, 2025 and sell it today you would earn a total of  645.00  from holding Global X Robotics or generate 26.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Global X Robotics  vs.  Evolve Cyber Security

Global X Robotics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Robotics are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Global X displayed solid returns over the last few months and may actually be approaching a breakup point.

Evolve Cyber Security

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Cyber Security are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Evolve Cyber displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global X and Evolve Cyber

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

The idea behind Global X Robotics and Evolve Cyber Security 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.