Correlation Between Global X and OneAscent Emerging

Can any of the company-specific risk be diversified away by investing in both Global X and OneAscent Emerging 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 OneAscent Emerging 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 OneAscent Emerging Markets, you can compare the effects of market volatilities on Global X and OneAscent Emerging 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 OneAscent Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and OneAscent Emerging.

Diversification Opportunities for Global X and OneAscent Emerging

0.64

Correlation Coefficient

Global X  OneAscent Emerging

Poor diversification

The 3 months correlation between Global and OneAscent is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and OneAscent Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Emerging 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 OneAscent Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Emerging has no effect on the direction of Global X i.e., Global X and OneAscent Emerging go up and down completely randomly.

Pair Corralation between Global X and OneAscent Emerging

Given the investment horizon of 90 days Global X Funds is expected to generate 1.08 times more return on investment than OneAscent Emerging. However, Global X is 1.08 times more volatile than OneAscent Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. OneAscent Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest  2,454  in Global X Funds on March 3, 2025 and sell it today you would earn a total of  3,250  from holding Global X Funds or generate 132.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	87.07%
Values	Daily Returns

Global X Funds  vs.  OneAscent Emerging Markets

Global X Funds

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Funds are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal essential indicators, Global X exhibited solid returns over the last few months and may actually be approaching a breakup point.

OneAscent Emerging

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent Emerging Markets are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, OneAscent Emerging may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Global X and OneAscent Emerging

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

The idea behind Global X Funds and OneAscent Emerging Markets 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.