Correlation Between Amplify Alternative and Global X
Can any of the company-specific risk be diversified away by investing in both Amplify Alternative 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 Alternative 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 Alternative Harvest and Global X Robotics, you can compare the effects of market volatilities on Amplify Alternative 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 Alternative with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Alternative and Global X.
Diversification Opportunities for Amplify Alternative and Global X
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amplify and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Alternative Harvest and Global X Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Robotics and Amplify Alternative 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 Alternative Harvest 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 Robotics has no effect on the direction of Amplify Alternative i.e., Amplify Alternative and Global X go up and down completely randomly.
Pair Corralation between Amplify Alternative and Global X
Allowing for the 90-day total investment horizon Amplify Alternative Harvest is expected to generate 3.38 times more return on investment than Global X. However, Amplify Alternative is 3.38 times more volatile than Global X Robotics. It trades about 0.05 of its potential returns per unit of risk. Global X Robotics is currently generating about -0.27 per unit of risk. If you would invest 377.00 in Amplify Alternative Harvest on January 25, 2024 and sell it today you would earn a total of 11.00 from holding Amplify Alternative Harvest or generate 2.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Amplify Alternative Harvest vs. Global X Robotics
Performance |
Timeline |
Amplify Alternative |
Global X Robotics |
Amplify Alternative and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amplify Alternative and Global X
The main advantage of trading using opposite Amplify Alternative and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Alternative 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 Alternative vs. SPDR Kensho New | Amplify Alternative vs. iShares Robotics and | Amplify Alternative vs. Global X FinTech | Amplify Alternative vs. Invesco SP SmallCap |
Global X vs. SPDR Kensho New | Global X vs. iShares Robotics and | Global X vs. Global X FinTech | Global X vs. Invesco SP SmallCap |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Transaction History View history of all your transactions and understand their impact on performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |