Correlation Between Amplify and Global X

Can any of the company-specific risk be diversified away by investing in both Amplify 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 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 and Global X Telemedicine, you can compare the effects of market volatilities on Amplify 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 with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify and Global X.

Diversification Opportunities for Amplify and Global X

0.0

Correlation Coefficient

Amplify  Global X

Pay attention - limited upside

The 3 months correlation between Amplify and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplify and Global X Telemedicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Telemedicine and Amplify 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 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 Telemedicine has no effect on the direction of Amplify i.e., Amplify and Global X go up and down completely randomly.

Pair Corralation between Amplify and Global X

If you would invest (100.00) in Amplify on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Amplify or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amplify  vs.  Global X Telemedicine

Amplify

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amplify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amplify is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Global X Telemedicine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Telemedicine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Global X is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Amplify and Global X

The main advantage of trading using opposite Amplify and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify 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.

The idea behind Amplify and Global X Telemedicine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.