Correlation Between Amplify Cash and FT Vest
Can any of the company-specific risk be diversified away by investing in both Amplify Cash and FT Vest 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 Cash and FT Vest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Cash Flow and FT Vest Equity, you can compare the effects of market volatilities on Amplify Cash and FT Vest 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 Cash with a short position of FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Cash and FT Vest.
Diversification Opportunities for Amplify Cash and FT Vest
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and DHDG is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Cash Flow and FT Vest Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Equity and Amplify Cash 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 Cash Flow are associated (or correlated) with FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Equity has no effect on the direction of Amplify Cash i.e., Amplify Cash and FT Vest go up and down completely randomly.
Pair Corralation between Amplify Cash and FT Vest
Given the investment horizon of 90 days Amplify Cash Flow is expected to generate 1.65 times more return on investment than FT Vest. However, Amplify Cash is 1.65 times more volatile than FT Vest Equity. It trades about 0.09 of its potential returns per unit of risk. FT Vest Equity is currently generating about 0.07 per unit of risk. If you would invest 2,716 in Amplify Cash Flow on November 3, 2024 and sell it today you would earn a total of 278.00 from holding Amplify Cash Flow or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.8% |
| Values | Daily Returns |
Amplify Cash Flow vs. FT Vest Equity
Performance |
| Timeline |
| Amplify Cash Flow |
| FT Vest Equity |
Amplify Cash and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Cash and FT Vest
The main advantage of trading using opposite Amplify Cash and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Cash position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest's long position.| Amplify Cash vs. JPMorgan Fundamental Data | Amplify Cash vs. Davis Select International | Amplify Cash vs. Dimensional ETF Trust | Amplify Cash vs. Principal Value ETF |
| FT Vest vs. Northern Lights | FT Vest vs. iShares Nasdaq 100 ex | FT Vest vs. Dimensional International High | FT Vest vs. First Trust Exchange Traded |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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