Correlation Between IShares Core and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both IShares Core and Amplify Cash 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 IShares Core and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Dividend and Amplify Cash Flow, you can compare the effects of market volatilities on IShares Core and Amplify Cash 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 IShares Core with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amplify Cash.
Diversification Opportunities for IShares Core and Amplify Cash
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Dividend and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and IShares Core 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 iShares Core Dividend are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of IShares Core i.e., IShares Core and Amplify Cash go up and down completely randomly.
Pair Corralation between IShares Core and Amplify Cash
Given the investment horizon of 90 days iShares Core Dividend is expected to generate 0.61 times more return on investment than Amplify Cash. However, iShares Core Dividend is 1.63 times less risky than Amplify Cash. It trades about 0.18 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.1 per unit of risk. If you would invest 5,667 in iShares Core Dividend on September 1, 2024 and sell it today you would earn a total of 827.00 from holding iShares Core Dividend or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
iShares Core Dividend vs. Amplify Cash Flow
Performance |
| Timeline |
| iShares Core Dividend |
| Amplify Cash Flow |
IShares Core and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amplify Cash
The main advantage of trading using opposite IShares Core and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Amplify Cash 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 Cash will offset losses from the drop in Amplify Cash's long position.| IShares Core vs. iShares Core High | IShares Core vs. Schwab Dividend Equity | IShares Core vs. ProShares SP 500 | IShares Core vs. Invesco SP 500 |
| Amplify Cash vs. Invesco Actively Managed | Amplify Cash vs. iShares Trust | Amplify Cash vs. Xtrackers MSCI Emerging | Amplify Cash vs. iShares MSCI Emerging |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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