Correlation Between Tidal Trust and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Tidal Trust 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 Tidal Trust and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and Amplify Cash Flow, you can compare the effects of market volatilities on Tidal Trust 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 Tidal Trust with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and Amplify Cash.
Diversification Opportunities for Tidal Trust and Amplify Cash
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tidal and Amplify is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II 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 Tidal 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 Tidal Trust II 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 Tidal Trust i.e., Tidal Trust and Amplify Cash go up and down completely randomly.
Pair Corralation between Tidal Trust and Amplify Cash
Given the investment horizon of 90 days Tidal Trust II is expected to generate 103.8 times more return on investment than Amplify Cash. However, Tidal Trust is 103.8 times more volatile than Amplify Cash Flow. It trades about 0.1 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.07 per unit of risk. If you would invest 0.00 in Tidal Trust II on September 2, 2024 and sell it today you would earn a total of 1,393 from holding Tidal Trust II or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.69% |
| Values | Daily Returns |
Tidal Trust II vs. Amplify Cash Flow
Performance |
| Timeline |
| Tidal Trust II |
| Amplify Cash Flow |
Tidal Trust and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and Amplify Cash
The main advantage of trading using opposite Tidal Trust and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust 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.| Tidal Trust vs. Tidal Trust II | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Direxion Daily META | Tidal Trust vs. Tidal Trust II |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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