Correlation Between Amplify ETF and ALPS
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and ALPS 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 ETF and ALPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and ALPS, you can compare the effects of market volatilities on Amplify ETF and ALPS 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 ETF with a short position of ALPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and ALPS.
Diversification Opportunities for Amplify ETF and ALPS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and ALPS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and ALPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALPS and Amplify ETF 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 ETF Trust are associated (or correlated) with ALPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALPS has no effect on the direction of Amplify ETF i.e., Amplify ETF and ALPS go up and down completely randomly.
Pair Corralation between Amplify ETF and ALPS
If you would invest 2,051 in Amplify ETF Trust on August 30, 2024 and sell it today you would earn a total of 154.00 from holding Amplify ETF Trust or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Amplify ETF Trust vs. ALPS
Performance |
| Timeline |
| Amplify ETF Trust |
| ALPS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Amplify ETF and ALPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and ALPS
The main advantage of trading using opposite Amplify ETF and ALPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, ALPS 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 ALPS will offset losses from the drop in ALPS's long position.| Amplify ETF vs. Invesco Dynamic Leisure | Amplify ETF vs. US Global Jets | Amplify ETF vs. Global X Infrastructure | Amplify ETF vs. ProShares Online Retail |
| ALPS vs. Consumer Discretionary Select | ALPS vs. Vanguard Consumer Discretionary | ALPS vs. iShares Home Construction | ALPS vs. Fidelity MSCI Consumer |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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