Correlation Between Global X and Amplify BlackSwan

Can any of the company-specific risk be diversified away by investing in both Global X and Amplify BlackSwan 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 Global X and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global X Thematic and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on Global X and Amplify BlackSwan 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 Global X with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Amplify BlackSwan.

Diversification Opportunities for Global X and Amplify BlackSwan

0.21

Correlation Coefficient

Global X  Amplify BlackSwan

Modest diversification

The 3 months correlation between Global and Amplify is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Global X Thematic and Amplify BlackSwan ISWN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan ISWN and Global X 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 Global X Thematic are associated (or correlated) with Amplify BlackSwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify BlackSwan ISWN has no effect on the direction of Global X i.e., Global X and Amplify BlackSwan go up and down completely randomly.

Pair Corralation between Global X and Amplify BlackSwan

Given the investment horizon of 90 days Global X Thematic is expected to under-perform the Amplify BlackSwan. In addition to that, Global X is 1.55 times more volatile than Amplify BlackSwan ISWN. It trades about 0.0 of its total potential returns per unit of risk. Amplify BlackSwan ISWN is currently generating about 0.2 per unit of volatility. If you would invest  1,809  in Amplify BlackSwan ISWN on December 26, 2024 and sell it today you would earn a total of  148.00  from holding Amplify BlackSwan ISWN or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Global X Thematic  vs.  Amplify BlackSwan ISWN

Global X Thematic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global X Thematic has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Global X is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amplify BlackSwan ISWN

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify BlackSwan ISWN are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Amplify BlackSwan may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Global X and Amplify BlackSwan

The main advantage of trading using opposite Global X and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Amplify BlackSwan 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 Amplify BlackSwan will offset losses from the drop in Amplify BlackSwan's long position.

The idea behind Global X Thematic and Amplify BlackSwan ISWN 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.