Correlation Between American Century and Global X

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

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

Diversification Opportunities for American Century and Global X

0.0

Correlation Coefficient

American Century  Global X

Pay attention - limited upside

The 3 months correlation between American and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Century ETF and Global X Variable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Variable and American Century 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 American Century ETF 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 Variable has no effect on the direction of American Century i.e., American Century and Global X go up and down completely randomly.

Pair Corralation between American Century and Global X

If you would invest  2,269  in Global X Variable on May 6, 2025 and sell it today you would earn a total of  40.00  from holding Global X Variable or generate 1.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

American Century ETF  vs.  Global X Variable

American Century ETF

Risk-Adjusted Performance

OK

Over the last 90 days American Century ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, American Century is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Global X Variable

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Variable are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable technical and fundamental indicators, Global X is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with American Century and Global X

The main advantage of trading using opposite American Century and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century 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 American Century ETF and Global X Variable 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.