Correlation Between Amplify High and Global X
Can any of the company-specific risk be diversified away by investing in both Amplify High 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 High 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 High Income and Global X NASDAQ, you can compare the effects of market volatilities on Amplify High 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 High with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Global X.
Diversification Opportunities for Amplify High and Global X
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and Global is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and Global X NASDAQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X NASDAQ and Amplify High 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 High Income 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 NASDAQ has no effect on the direction of Amplify High i.e., Amplify High and Global X go up and down completely randomly.
Pair Corralation between Amplify High and Global X
Considering the 90-day investment horizon Amplify High is expected to generate 1.22 times less return on investment than Global X. But when comparing it to its historical volatility, Amplify High Income is 1.61 times less risky than Global X. It trades about 0.13 of its potential returns per unit of risk. Global X NASDAQ is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,652 in Global X NASDAQ on September 1, 2024 and sell it today you would earn a total of 170.00 from holding Global X NASDAQ or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. Global X NASDAQ
Performance |
| Timeline |
| Amplify High Income |
| Global X NASDAQ |
Amplify High and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and Global X
The main advantage of trading using opposite Amplify High and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High 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 High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow ETF Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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