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 Telemedicine, 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
Good diversification
The 3 months correlation between Amplify and Global is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Amplify and Global X Telemedicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Telemedicine 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 Telemedicine 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 1.26 times less return on investment than Global X. But when comparing it to its historical volatility, Amplify is 1.04 times less risky than Global X. It trades about 0.03 of its potential returns per unit of risk. Global X Telemedicine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 918.00 in Global X Telemedicine on September 2, 2024 and sell it today you would earn a total of 130.00 from holding Global X Telemedicine or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.81% |
| Values | Daily Returns |
Amplify vs. Global X Telemedicine
Performance |
| Timeline |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X Telemedicine |
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. Global X E commerce | Global X vs. Global X Genomics | Global X vs. Global X Cloud | Global X vs. Global X FinTech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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