Correlation Between Amplify ETF and Smith Nephew
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and Smith Nephew 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 Smith Nephew 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 Smith Nephew SNATS, you can compare the effects of market volatilities on Amplify ETF and Smith Nephew 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 Smith Nephew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and Smith Nephew.
Diversification Opportunities for Amplify ETF and Smith Nephew
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplify and Smith is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Smith Nephew SNATS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Nephew SNATS 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 Smith Nephew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Nephew SNATS has no effect on the direction of Amplify ETF i.e., Amplify ETF and Smith Nephew go up and down completely randomly.
Pair Corralation between Amplify ETF and Smith Nephew
Given the investment horizon of 90 days Amplify ETF is expected to generate 1.03 times less return on investment than Smith Nephew. But when comparing it to its historical volatility, Amplify ETF Trust is 1.14 times less risky than Smith Nephew. It trades about 0.22 of its potential returns per unit of risk. Smith Nephew SNATS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,474 in Smith Nephew SNATS on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Smith Nephew SNATS or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. Smith Nephew SNATS
Performance |
| Timeline |
| Amplify ETF Trust |
| Smith Nephew SNATS |
Amplify ETF and Smith Nephew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and Smith Nephew
The main advantage of trading using opposite Amplify ETF and Smith Nephew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, Smith Nephew 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 Smith Nephew will offset losses from the drop in Smith Nephew'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 |
| Smith Nephew vs. CochLear Ltd ADR | Smith Nephew vs. Integer Holdings Corp | Smith Nephew vs. Orthofix Medical | Smith Nephew vs. Glaukos Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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