Correlation Between Disney and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Disney 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 Disney and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and Amplify ETF Trust, you can compare the effects of market volatilities on Disney 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 Disney with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and Amplify ETF.
Diversification Opportunities for Disney and Amplify ETF
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Disney and Amplify is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney 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 Disney 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 Walt Disney 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 Disney i.e., Disney and Amplify ETF go up and down completely randomly.
Pair Corralation between Disney and Amplify ETF
Considering the 90-day investment horizon Walt Disney is expected to generate 1.63 times more return on investment than Amplify ETF. However, Disney is 1.63 times more volatile than Amplify ETF Trust. It trades about 0.47 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.43 per unit of risk. If you would invest 9,620 in Walt Disney on August 27, 2024 and sell it today you would earn a total of 1,945 from holding Walt Disney or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walt Disney vs. Amplify ETF Trust
Performance |
| Timeline |
| Walt Disney |
| Amplify ETF Trust |
Disney and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Disney and Amplify ETF
The main advantage of trading using opposite Disney and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney 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.| Disney vs. Roku Inc | Disney vs. AMC Entertainment Holdings | Disney vs. Paramount Global Class | Disney vs. Warner Bros Discovery |
| Amplify ETF vs. iShares Dividend and | Amplify ETF vs. Martin Currie Sustainable | Amplify ETF vs. VictoryShares THB Mid | Amplify ETF vs. Mast Global Battery |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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