Correlation Between Amplify Bloomberg and Global X

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

Diversification Opportunities for Amplify Bloomberg and Global X

-0.02

Correlation Coefficient

Amplify Bloomberg  Global X

Good diversification

The 3 months correlation between Amplify and Global is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Bloomberg Treasury and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Amplify Bloomberg 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 Bloomberg Treasury 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 Funds has no effect on the direction of Amplify Bloomberg i.e., Amplify Bloomberg and Global X go up and down completely randomly.

Pair Corralation between Amplify Bloomberg and Global X

Given the investment horizon of 90 days Amplify Bloomberg Treasury is expected to generate 3.36 times more return on investment than Global X. However, Amplify Bloomberg is 3.36 times more volatile than Global X Funds. It trades about 0.05 of its potential returns per unit of risk. Global X Funds is currently generating about -0.13 per unit of risk. If you would invest  2,506  in Amplify Bloomberg Treasury on September 12, 2024 and sell it today you would earn a total of  34.00  from holding Amplify Bloomberg Treasury or generate 1.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	48.44%
Values	Daily Returns

Amplify Bloomberg Treasury  vs.  Global X Funds

Amplify Bloomberg

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Bloomberg Treasury are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Amplify Bloomberg is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Global X Funds

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X Funds has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Global X is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Amplify Bloomberg and Global X

The main advantage of trading using opposite Amplify Bloomberg and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Bloomberg 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 Bloomberg Treasury and Global X Funds 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..