Correlation Between ProShares Trust and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Amplify ETF 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 ProShares Trust and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Amplify ETF Trust, you can compare the effects of market volatilities on ProShares Trust and Amplify ETF 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 ProShares Trust with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Amplify ETF.
Diversification Opportunities for ProShares Trust and Amplify ETF
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ProShares and Amplify is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and ProShares Trust 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 ProShares Trust are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of ProShares Trust i.e., ProShares Trust and Amplify ETF go up and down completely randomly.
Pair Corralation between ProShares Trust and Amplify ETF
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Amplify ETF. In addition to that, ProShares Trust is 6.17 times more volatile than Amplify ETF Trust. It trades about -0.39 of its total potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.26 per unit of volatility. If you would invest 2,137 in Amplify ETF Trust on September 2, 2024 and sell it today you would earn a total of 83.00 from holding Amplify ETF Trust or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Amplify ETF Trust
Performance |
| Timeline |
| ProShares Trust |
| Amplify ETF Trust |
ProShares Trust and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Amplify ETF
The main advantage of trading using opposite ProShares Trust and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Amplify ETF 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 ETF will offset losses from the drop in Amplify ETF's long position.| ProShares Trust vs. AXS TSLA Bear | ProShares Trust vs. Tuttle Capital Short | ProShares Trust vs. ProShares Bitcoin Strategy | ProShares Trust vs. ProShares UltraShort Bloomberg |
| Amplify ETF vs. Amplify BlackSwan ISWN | Amplify ETF vs. Amplify BlackSwan Growth | Amplify ETF vs. Amplify Thematic All Stars | Amplify ETF vs. Amplify ETF Trust |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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