Correlation Between Amplify and Global X
Can any of the company-specific risk be diversified away by investing in both Amplify 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 Amplify and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify and Global X Cloud, you can compare the effects of market volatilities on Amplify 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 Amplify with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify and Global X.
Diversification Opportunities for Amplify and Global X
Average diversification
The 3 months correlation between Amplify and Global is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amplify and Global X Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Cloud and Amplify 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 Amplify 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 Cloud has no effect on the direction of Amplify i.e., Amplify and Global X go up and down completely randomly.
Pair Corralation between Amplify and Global X
Given the investment horizon of 90 days Amplify is expected to generate 1.44 times less return on investment than Global X. In addition to that, Amplify is 1.13 times more volatile than Global X Cloud. It trades about 0.03 of its total potential returns per unit of risk. Global X Cloud is currently generating about 0.06 per unit of volatility. If you would invest 2,093 in Global X Cloud on September 2, 2024 and sell it today you would earn a total of 370.00 from holding Global X Cloud or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.81% |
| Values | Daily Returns |
Amplify vs. Global X Cloud
Performance |
| Timeline |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X Cloud |
Amplify and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify and Global X
The main advantage of trading using opposite Amplify and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify 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.| Amplify vs. iShares Genomics Immunology | Amplify vs. Direxion Work From | Amplify vs. Loncar Cancer Immunotherapy |
| Global X vs. WisdomTree Cloud Computing | Global X vs. First Trust Cloud | Global X vs. Global X FinTech | Global X vs. Global X Cybersecurity |
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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