Correlation Between Global X and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Global X and Amplify Cash 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 Amplify Cash 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 Amplify Cash Flow, you can compare the effects of market volatilities on Global X and Amplify Cash 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 Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Amplify Cash.
Diversification Opportunities for Global X and Amplify Cash
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Amplify is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow 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 Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of Global X i.e., Global X and Amplify Cash go up and down completely randomly.
Pair Corralation between Global X and Amplify Cash
Given the investment horizon of 90 days Global X Funds is expected to generate 66.59 times more return on investment than Amplify Cash. However, Global X is 66.59 times more volatile than Amplify Cash Flow. It trades about 0.06 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.05 per unit of risk. If you would invest 2,319 in Global X Funds on November 3, 2024 and sell it today you would earn a total of 378.70 from holding Global X Funds or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Global X Funds vs. Amplify Cash Flow
Performance |
| Timeline |
| Global X Funds |
| Amplify Cash Flow |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Global X and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Amplify Cash
The main advantage of trading using opposite Global X and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Amplify Cash 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 Amplify Cash will offset losses from the drop in Amplify Cash's long position.| Global X vs. Global X Dow | Global X vs. AdvisorShares STAR Global | Global X vs. FT Vest Dow | Global X vs. Natixis ETF Trust |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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