Correlation Between Dupont De and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Dupont De 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 Dupont De and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Amplify ETF Trust, you can compare the effects of market volatilities on Dupont De 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 Dupont De with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Amplify ETF.
Diversification Opportunities for Dupont De and Amplify ETF
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dupont and Amplify is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours 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 Dupont De 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 Dupont De Nemours 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 Dupont De i.e., Dupont De and Amplify ETF go up and down completely randomly.
Pair Corralation between Dupont De and Amplify ETF
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to under-perform the Amplify ETF. But the stock apears to be less risky and, when comparing its historical volatility, Dupont De Nemours is 1.1 times less risky than Amplify ETF. The stock trades about -0.05 of its potential returns per unit of risk. The Amplify ETF Trust is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,402 in Amplify ETF Trust on August 24, 2024 and sell it today you would earn a total of 609.00 from holding Amplify ETF Trust or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Amplify ETF Trust
Performance |
| Timeline |
| Dupont De Nemours |
| Amplify ETF Trust |
Dupont De and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Amplify ETF
The main advantage of trading using opposite Dupont De and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De 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.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. LyondellBasell Industries NV | Dupont De vs. Air Products and |
| Amplify ETF vs. Global X FinTech | Amplify ETF vs. Amplify Online Retail | Amplify ETF vs. First Trust Cloud | Amplify ETF vs. Amplify ETF Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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