Correlation Between Defiance Hotel and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Defiance Hotel 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 Defiance Hotel and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Defiance Hotel Airline and Amplify ETF Trust, you can compare the effects of market volatilities on Defiance Hotel 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 Defiance Hotel with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Defiance Hotel and Amplify ETF.
Diversification Opportunities for Defiance Hotel and Amplify ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Defiance and Amplify is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Defiance Hotel Airline 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 Defiance Hotel 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 Defiance Hotel Airline 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 Defiance Hotel i.e., Defiance Hotel and Amplify ETF go up and down completely randomly.
Pair Corralation between Defiance Hotel and Amplify ETF
Given the investment horizon of 90 days Defiance Hotel Airline is expected to generate 1.02 times more return on investment than Amplify ETF. However, Defiance Hotel is 1.02 times more volatile than Amplify ETF Trust. It trades about 0.44 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.4 per unit of risk. If you would invest 2,456 in Defiance Hotel Airline on September 5, 2024 and sell it today you would earn a total of 247.00 from holding Defiance Hotel Airline or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Defiance Hotel Airline vs. Amplify ETF Trust
Performance |
| Timeline |
| Defiance Hotel Airline |
| Amplify ETF Trust |
Defiance Hotel and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Defiance Hotel and Amplify ETF
The main advantage of trading using opposite Defiance Hotel and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Defiance Hotel 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.| Defiance Hotel vs. Smith Nephew SNATS | Defiance Hotel vs. Fresenius Medical Care | Defiance Hotel vs. Fomento Economico Mexicano | Defiance Hotel vs. The Cooper Companies, |
| Amplify ETF vs. Invesco Dynamic Leisure | Amplify ETF vs. US Global Jets | Amplify ETF vs. Global X Infrastructure | Amplify ETF vs. ProShares Online Retail |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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