Correlation Between Professionally Managed and Global X

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

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

Diversification Opportunities for Professionally Managed and Global X

0.81

Correlation Coefficient

Professionally Managed  Global X

Very poor diversification

The 3 months correlation between Professionally and Global is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Professionally Managed Portfol and Global X Disruptive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Disruptive and Professionally Managed 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 Professionally Managed Portfolios 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 Disruptive has no effect on the direction of Professionally Managed i.e., Professionally Managed and Global X go up and down completely randomly.

Pair Corralation between Professionally Managed and Global X

Given the investment horizon of 90 days Professionally Managed is expected to generate 21.67 times less return on investment than Global X. But when comparing it to its historical volatility, Professionally Managed Portfolios is 4.28 times less risky than Global X. It trades about 0.02 of its potential returns per unit of risk. Global X Disruptive is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,174  in Global X Disruptive on August 19, 2025 and sell it today you would earn a total of  271.00  from holding Global X Disruptive or generate 12.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	76.74%
Values	Daily Returns

Professionally Managed Portfol  vs.  Global X Disruptive

Professionally Managed

Risk-Adjusted Performance

Fair

Over the last 90 days Professionally Managed Portfolios has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Professionally Managed is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Global X Disruptive

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Disruptive are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Global X unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Professionally Managed and Global X

The main advantage of trading using opposite Professionally Managed and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Professionally Managed 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 Professionally Managed Portfolios and Global X Disruptive 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.