Correlation Between Global X and YieldMax AMZN
Can any of the company-specific risk be diversified away by investing in both Global X and YieldMax AMZN 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 YieldMax AMZN 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 YieldMax AMZN Option, you can compare the effects of market volatilities on Global X and YieldMax AMZN 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 YieldMax AMZN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and YieldMax AMZN.
Diversification Opportunities for Global X and YieldMax AMZN
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and YieldMax is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and YieldMax AMZN Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax AMZN Option 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 YieldMax AMZN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax AMZN Option has no effect on the direction of Global X i.e., Global X and YieldMax AMZN go up and down completely randomly.
Pair Corralation between Global X and YieldMax AMZN
Given the investment horizon of 90 days Global X Funds is expected to generate 1.58 times more return on investment than YieldMax AMZN. However, Global X is 1.58 times more volatile than YieldMax AMZN Option. It trades about 0.19 of its potential returns per unit of risk. YieldMax AMZN Option is currently generating about 0.25 per unit of risk. If you would invest 3,444 in Global X Funds on November 2, 2024 and sell it today you would earn a total of 226.00 from holding Global X Funds or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. YieldMax AMZN Option
Performance |
| Timeline |
| Global X Funds |
| YieldMax AMZN Option |
Global X and YieldMax AMZN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and YieldMax AMZN
The main advantage of trading using opposite Global X and YieldMax AMZN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, YieldMax AMZN 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 YieldMax AMZN will offset losses from the drop in YieldMax AMZN's long position.| Global X vs. Bitwise Crypto Industry | Global X vs. Valkyrie Bitcoin Strategy | Global X vs. Stronghold Digital Mining |
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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.
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