Correlation Between Global X and Amplify
Can any of the company-specific risk be diversified away by investing in both Global X and Amplify 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Thematic and Amplify, you can compare the effects of market volatilities on Global X and Amplify 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Amplify.
Diversification Opportunities for Global X and Amplify
Average diversification
The 3 months correlation between Global and Amplify is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Global X Thematic and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify 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 Thematic are associated (or correlated) with Amplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify has no effect on the direction of Global X i.e., Global X and Amplify go up and down completely randomly.
Pair Corralation between Global X and Amplify
Given the investment horizon of 90 days Global X Thematic is expected to generate 1.0 times more return on investment than Amplify. However, Global X Thematic is 1.0 times less risky than Amplify. It trades about 0.01 of its potential returns per unit of risk. Amplify is currently generating about -0.01 per unit of risk. If you would invest 2,450 in Global X Thematic on August 31, 2024 and sell it today you would earn a total of 80.00 from holding Global X Thematic or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.03% |
| Values | Daily Returns |
Global X Thematic vs. Amplify
Performance |
| Timeline |
| Global X Thematic |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and Amplify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Amplify
The main advantage of trading using opposite Global X and Amplify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Amplify 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 will offset losses from the drop in Amplify's long position.| Global X vs. Quadratic Interest Rate | Global X vs. Simplify Interest Rate | Global X vs. iShares Small Cap | Global X vs. Freedom 100 Emerging |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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