Correlation Between First Trust and Amplify High
Can any of the company-specific risk be diversified away by investing in both First Trust and Amplify High 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 First Trust and Amplify High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Exchange Traded and Amplify High Income, you can compare the effects of market volatilities on First Trust and Amplify High 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 First Trust with a short position of Amplify High. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Amplify High.
Diversification Opportunities for First Trust and Amplify High
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Amplify is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and Amplify High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify High Income and First Trust 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 First Trust Exchange Traded are associated (or correlated) with Amplify High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify High Income has no effect on the direction of First Trust i.e., First Trust and Amplify High go up and down completely randomly.
Pair Corralation between First Trust and Amplify High
Given the investment horizon of 90 days First Trust Exchange Traded is expected to generate 0.14 times more return on investment than Amplify High. However, First Trust Exchange Traded is 7.26 times less risky than Amplify High. It trades about 0.39 of its potential returns per unit of risk. Amplify High Income is currently generating about 0.05 per unit of risk. If you would invest 3,996 in First Trust Exchange Traded on September 12, 2024 and sell it today you would earn a total of 22.00 from holding First Trust Exchange Traded or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Exchange Traded vs. Amplify High Income
Performance |
| Timeline |
| First Trust Exchange |
| Amplify High Income |
First Trust and Amplify High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Amplify High
The main advantage of trading using opposite First Trust and Amplify High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Amplify High 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 High will offset losses from the drop in Amplify High's long position.| First Trust vs. Innovator ETFs Trust | First Trust vs. First Trust Cboe | First Trust vs. FT Cboe Vest | First Trust vs. Innovator SP 500 |
| Amplify High vs. FT Cboe Vest | Amplify High vs. First Trust Exchange Traded | Amplify High vs. FT Cboe Vest | Amplify High vs. Anfield Equity Sector |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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