Correlation Between Amplify CWP and Invesco Exchange
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and Invesco Exchange 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 Amplify CWP and Invesco Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify CWP Enhanced and Invesco Exchange Traded, you can compare the effects of market volatilities on Amplify CWP and Invesco Exchange 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 Amplify CWP with a short position of Invesco Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and Invesco Exchange.
Diversification Opportunities for Amplify CWP and Invesco Exchange
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Invesco is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and Invesco Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Exchange Traded and Amplify CWP 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 Amplify CWP Enhanced are associated (or correlated) with Invesco Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Exchange Traded has no effect on the direction of Amplify CWP i.e., Amplify CWP and Invesco Exchange go up and down completely randomly.
Pair Corralation between Amplify CWP and Invesco Exchange
Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 0.91 times more return on investment than Invesco Exchange. However, Amplify CWP Enhanced is 1.1 times less risky than Invesco Exchange. It trades about 0.27 of its potential returns per unit of risk. Invesco Exchange Traded is currently generating about 0.09 per unit of risk. If you would invest 4,137 in Amplify CWP Enhanced on November 18, 2024 and sell it today you would earn a total of 105.00 from holding Amplify CWP Enhanced or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify CWP Enhanced vs. Invesco Exchange Traded
Performance |
| Timeline |
| Amplify CWP Enhanced |
| Invesco Exchange Traded |
Amplify CWP and Invesco Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and Invesco Exchange
The main advantage of trading using opposite Amplify CWP and Invesco Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, Invesco Exchange 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 Invesco Exchange will offset losses from the drop in Invesco Exchange's long position.| Amplify CWP vs. NEOS ETF Trust | Amplify CWP vs. Global X SP | Amplify CWP vs. Global X Russell | Amplify CWP vs. JPMorgan Equity Premium |
| Invesco Exchange vs. Vanguard Quality Factor | Invesco Exchange vs. Vanguard Momentum Factor | Invesco Exchange vs. Vanguard Value Factor | Invesco Exchange vs. Vanguard Minimum Volatility |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |