Correlation Between Change Finance and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Change Finance 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 Change Finance and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Change Finance Diversified and Amplify ETF Trust, you can compare the effects of market volatilities on Change Finance 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 Change Finance with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Change Finance and Amplify ETF.
Diversification Opportunities for Change Finance and Amplify ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Change and Amplify is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Change Finance Diversified 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 Change Finance 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 Change Finance Diversified 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 Change Finance i.e., Change Finance and Amplify ETF go up and down completely randomly.
Pair Corralation between Change Finance and Amplify ETF
Given the investment horizon of 90 days Change Finance is expected to generate 1.19 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, Change Finance Diversified is 1.09 times less risky than Amplify ETF. It trades about 0.15 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,045 in Amplify ETF Trust on October 24, 2024 and sell it today you would earn a total of 161.00 from holding Amplify ETF Trust or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Change Finance Diversified vs. Amplify ETF Trust
Performance |
| Timeline |
| Change Finance Diver |
| Amplify ETF Trust |
Change Finance and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Change Finance and Amplify ETF
The main advantage of trading using opposite Change Finance and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Change Finance 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.| Change Finance vs. Amplify ETF Trust | Change Finance vs. iShares MSCI ACWI | Change Finance vs. First Trust EIP | Change Finance vs. SPDR SP 500 |
| Amplify ETF vs. Change Finance Diversified | Amplify ETF vs. iShares MSCI ACWI | Amplify ETF vs. SPDR SP 500 | Amplify ETF vs. SPDR MSCI Emerging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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