Correlation Between Amplify Cash and Global X
Can any of the company-specific risk be diversified away by investing in both Amplify Cash 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 Cash 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 Cash Flow and Global X Dow, you can compare the effects of market volatilities on Amplify Cash 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 Cash with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Cash and Global X.
Diversification Opportunities for Amplify Cash and Global X
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and Global is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Cash Flow and Global X Dow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Dow and Amplify Cash 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 Cash Flow 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 Dow has no effect on the direction of Amplify Cash i.e., Amplify Cash and Global X go up and down completely randomly.
Pair Corralation between Amplify Cash and Global X
Given the investment horizon of 90 days Amplify Cash Flow is expected to generate 1.59 times more return on investment than Global X. However, Amplify Cash is 1.59 times more volatile than Global X Dow. It trades about 0.33 of its potential returns per unit of risk. Global X Dow is currently generating about 0.3 per unit of risk. If you would invest 2,539 in Amplify Cash Flow on August 30, 2024 and sell it today you would earn a total of 200.00 from holding Amplify Cash Flow or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Cash Flow vs. Global X Dow
Performance |
| Timeline |
| Amplify Cash Flow |
| Global X Dow |
Amplify Cash and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Cash and Global X
The main advantage of trading using opposite Amplify Cash and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Cash 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 Cash vs. Freedom Day Dividend | Amplify Cash vs. Franklin Templeton ETF | Amplify Cash vs. iShares MSCI China | Amplify Cash vs. Tidal Trust II |
| Global X vs. Global X SP | Global X vs. Global X Russell | Global X vs. Global X SP | Global X vs. Global X Nasdaq |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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