Correlation Between YieldMax ABNB and Amplify CWP
Can any of the company-specific risk be diversified away by investing in both YieldMax ABNB and Amplify CWP 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 YieldMax ABNB and Amplify CWP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YieldMax ABNB Option and Amplify CWP Enhanced, you can compare the effects of market volatilities on YieldMax ABNB and Amplify CWP 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 YieldMax ABNB with a short position of Amplify CWP. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax ABNB and Amplify CWP.
Diversification Opportunities for YieldMax ABNB and Amplify CWP
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YieldMax and Amplify is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax ABNB Option and Amplify CWP Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify CWP Enhanced and YieldMax ABNB 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 YieldMax ABNB Option are associated (or correlated) with Amplify CWP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify CWP Enhanced has no effect on the direction of YieldMax ABNB i.e., YieldMax ABNB and Amplify CWP go up and down completely randomly.
Pair Corralation between YieldMax ABNB and Amplify CWP
Given the investment horizon of 90 days YieldMax ABNB Option is expected to generate 4.86 times more return on investment than Amplify CWP. However, YieldMax ABNB is 4.86 times more volatile than Amplify CWP Enhanced. It trades about 0.03 of its potential returns per unit of risk. Amplify CWP Enhanced is currently generating about -0.08 per unit of risk. If you would invest 1,440 in YieldMax ABNB Option on December 1, 2024 and sell it today you would earn a total of 15.00 from holding YieldMax ABNB Option or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YieldMax ABNB Option vs. Amplify CWP Enhanced
Performance |
| Timeline |
| YieldMax ABNB Option |
| Amplify CWP Enhanced |
YieldMax ABNB and Amplify CWP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YieldMax ABNB and Amplify CWP
The main advantage of trading using opposite YieldMax ABNB and Amplify CWP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax ABNB position performs unexpectedly, Amplify CWP 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 CWP will offset losses from the drop in Amplify CWP's long position.| YieldMax ABNB vs. Strategy Shares | YieldMax ABNB vs. Freedom Day Dividend | YieldMax ABNB vs. Franklin Templeton ETF | YieldMax ABNB vs. iShares MSCI China |
| Amplify CWP vs. Global X SP | Amplify CWP vs. Global X Russell | Amplify CWP vs. JPMorgan Equity Premium | Amplify CWP vs. JPMorgan Nasdaq Equity |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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