Correlation Between Main Buywrite and Amplify CWP
Can any of the company-specific risk be diversified away by investing in both Main Buywrite 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 Main Buywrite and Amplify CWP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main Buywrite ETF and Amplify CWP Enhanced, you can compare the effects of market volatilities on Main Buywrite 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 Main Buywrite with a short position of Amplify CWP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main Buywrite and Amplify CWP.
Diversification Opportunities for Main Buywrite and Amplify CWP
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Main and Amplify is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Main Buywrite ETF 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 Main Buywrite 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 Main Buywrite ETF 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 Main Buywrite i.e., Main Buywrite and Amplify CWP go up and down completely randomly.
Pair Corralation between Main Buywrite and Amplify CWP
Given the investment horizon of 90 days Main Buywrite ETF is expected to generate 0.71 times more return on investment than Amplify CWP. However, Main Buywrite ETF is 1.42 times less risky than Amplify CWP. It trades about -0.07 of its potential returns per unit of risk. Amplify CWP Enhanced is currently generating about -0.1 per unit of risk. If you would invest 1,401 in Main Buywrite ETF on December 23, 2024 and sell it today you would lose (13.00) from holding Main Buywrite ETF or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main Buywrite ETF vs. Amplify CWP Enhanced
Performance |
| Timeline |
| Main Buywrite ETF |
| Amplify CWP Enhanced |
Main Buywrite and Amplify CWP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main Buywrite and Amplify CWP
The main advantage of trading using opposite Main Buywrite and Amplify CWP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main Buywrite 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.| Main Buywrite vs. Main Sector Rotation | Main Buywrite vs. iShares Trust | Main Buywrite vs. Janus Detroit Street | Main Buywrite vs. Bondbloxx ETF Trust |
| Amplify CWP vs. NEOS ETF Trust | Amplify CWP vs. Global X SP | Amplify CWP vs. Global X Russell | Amplify CWP vs. JPMorgan Equity Premium |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |