Correlation Between Amplify Cash and JPMorgan Fundamental
Can any of the company-specific risk be diversified away by investing in both Amplify Cash and JPMorgan Fundamental 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 JPMorgan Fundamental 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 JPMorgan Fundamental Data, you can compare the effects of market volatilities on Amplify Cash and JPMorgan Fundamental 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 JPMorgan Fundamental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Cash and JPMorgan Fundamental.
Diversification Opportunities for Amplify Cash and JPMorgan Fundamental
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and JPMorgan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Cash Flow and JPMorgan Fundamental Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan Fundamental Data 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 JPMorgan Fundamental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan Fundamental Data has no effect on the direction of Amplify Cash i.e., Amplify Cash and JPMorgan Fundamental go up and down completely randomly.
Pair Corralation between Amplify Cash and JPMorgan Fundamental
Given the investment horizon of 90 days Amplify Cash Flow is expected to generate 0.92 times more return on investment than JPMorgan Fundamental. However, Amplify Cash Flow is 1.08 times less risky than JPMorgan Fundamental. It trades about -0.22 of its potential returns per unit of risk. JPMorgan Fundamental Data is currently generating about -0.21 per unit of risk. If you would invest 3,098 in Amplify Cash Flow on October 9, 2024 and sell it today you would lose (115.00) from holding Amplify Cash Flow or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Cash Flow vs. JPMorgan Fundamental Data
Performance |
| Timeline |
| Amplify Cash Flow |
| JPMorgan Fundamental Data |
Amplify Cash and JPMorgan Fundamental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Cash and JPMorgan Fundamental
The main advantage of trading using opposite Amplify Cash and JPMorgan Fundamental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Cash position performs unexpectedly, JPMorgan Fundamental 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 JPMorgan Fundamental will offset losses from the drop in JPMorgan Fundamental's long position.| Amplify Cash vs. JPMorgan Fundamental Data | Amplify Cash vs. Matthews China Discovery | Amplify Cash vs. Davis Select International | Amplify Cash vs. Dimensional ETF Trust |
| JPMorgan Fundamental vs. Matthews China Discovery | JPMorgan Fundamental vs. Davis Select International | JPMorgan Fundamental vs. Dimensional ETF Trust | JPMorgan Fundamental vs. Principal Value ETF |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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