Correlation Between SPDR Portfolio and Global X

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

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

Diversification Opportunities for SPDR Portfolio and Global X

0.96

Correlation Coefficient

SPDR Portfolio  Global X

Almost no diversification

The 3 months correlation between SPDR and Global is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and SPDR Portfolio 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 SPDR Portfolio SP 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 Funds has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Global X go up and down completely randomly.

Pair Corralation between SPDR Portfolio and Global X

Given the investment horizon of 90 days SPDR Portfolio SP is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Portfolio SP is 1.11 times less risky than Global X. The etf trades about -0.05 of its potential returns per unit of risk. The Global X Funds is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  9,375  in Global X Funds on July 16, 2025 and sell it today you would earn a total of  222.00  from holding Global X Funds or generate 2.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

SPDR Portfolio SP  vs.  Global X Funds

SPDR Portfolio SP

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Portfolio SP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, SPDR Portfolio is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Global X Funds

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Funds are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with SPDR Portfolio and Global X

The main advantage of trading using opposite SPDR Portfolio and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Portfolio 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 SPDR Portfolio SP and Global X Funds 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.