Correlation Between Amplify Online and Global X
Can any of the company-specific risk be diversified away by investing in both Amplify Online 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 Online 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 Online Retail and Global X E commerce, you can compare the effects of market volatilities on Amplify Online 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 Online with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Online and Global X.
Diversification Opportunities for Amplify Online and Global X
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and Global is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Online Retail and Global X E commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X E and Amplify Online 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 Online Retail 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 E has no effect on the direction of Amplify Online i.e., Amplify Online and Global X go up and down completely randomly.
Pair Corralation between Amplify Online and Global X
Given the investment horizon of 90 days Amplify Online is expected to generate 1.13 times less return on investment than Global X. In addition to that, Amplify Online is 1.08 times more volatile than Global X E commerce. It trades about 0.08 of its total potential returns per unit of risk. Global X E commerce is currently generating about 0.09 per unit of volatility. If you would invest 1,784 in Global X E commerce on November 19, 2024 and sell it today you would earn a total of 1,450 from holding Global X E commerce or generate 81.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Online Retail vs. Global X E commerce
Performance |
| Timeline |
| Amplify Online Retail |
| Global X E |
Amplify Online and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Online and Global X
The main advantage of trading using opposite Amplify Online and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Online 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 Online vs. ProShares Online Retail | Amplify Online vs. WisdomTree Cloud Computing | Amplify Online vs. Amplify ETF Trust | Amplify Online vs. Global X Cloud |
| Global X vs. ProShares Online Retail | Global X vs. Amplify Online Retail | Global X vs. ProShares Long OnlineShort | 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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