Correlation Between Dimensional ETF and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Dimensional ETF 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 Dimensional ETF and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimensional ETF Trust and Amplify Cash Flow, you can compare the effects of market volatilities on Dimensional ETF 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 Dimensional ETF with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimensional ETF and Amplify Cash.
Diversification Opportunities for Dimensional ETF and Amplify Cash
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dimensional and Amplify is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dimensional ETF Trust 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 Dimensional ETF 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 Dimensional ETF Trust 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 Dimensional ETF i.e., Dimensional ETF and Amplify Cash go up and down completely randomly.
Pair Corralation between Dimensional ETF and Amplify Cash
Given the investment horizon of 90 days Dimensional ETF is expected to generate 1.23 times less return on investment than Amplify Cash. In addition to that, Dimensional ETF is 1.47 times more volatile than Amplify Cash Flow. It trades about 0.16 of its total potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.28 per unit of volatility. If you would invest 2,956 in Amplify Cash Flow on October 25, 2024 and sell it today you would earn a total of 81.00 from holding Amplify Cash Flow or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimensional ETF Trust vs. Amplify Cash Flow
Performance |
| Timeline |
| Dimensional ETF Trust |
| Amplify Cash Flow |
Dimensional ETF and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimensional ETF and Amplify Cash
The main advantage of trading using opposite Dimensional ETF and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimensional ETF 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.| Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. Dimensional ETF Trust | Dimensional ETF vs. Dimensional International Value | Dimensional ETF vs. Dimensional Targeted Value |
| Amplify Cash vs. Invesco Actively Managed | Amplify Cash vs. Harbor ETF Trust | Amplify Cash vs. iShares Trust | Amplify Cash vs. Xtrackers 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |