Correlation Between Barclays ETN and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and Amplify Thematic 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 Barclays ETN and Amplify Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and Amplify Thematic All Stars, you can compare the effects of market volatilities on Barclays ETN and Amplify Thematic 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 Barclays ETN with a short position of Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Amplify Thematic.
Diversification Opportunities for Barclays ETN and Amplify Thematic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barclays and Amplify is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All and Barclays ETN 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 Barclays ETN Select are associated (or correlated) with Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of Barclays ETN i.e., Barclays ETN and Amplify Thematic go up and down completely randomly.
Pair Corralation between Barclays ETN and Amplify Thematic
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 0.72 times more return on investment than Amplify Thematic. However, Barclays ETN Select is 1.39 times less risky than Amplify Thematic. It trades about 0.58 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.19 per unit of risk. If you would invest 2,650 in Barclays ETN Select on August 30, 2024 and sell it today you would earn a total of 359.00 from holding Barclays ETN Select or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays ETN Select vs. Amplify Thematic All Stars
Performance |
| Timeline |
| Barclays ETN Select |
| Amplify Thematic All |
Barclays ETN and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and Amplify Thematic
The main advantage of trading using opposite Barclays ETN and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, Amplify Thematic 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 Thematic will offset losses from the drop in Amplify Thematic's long position.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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