Correlation Between Amplify CWP and IShares SP
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and IShares SP 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 IShares SP 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 iShares SP 500, you can compare the effects of market volatilities on Amplify CWP and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and IShares SP.
Diversification Opportunities for Amplify CWP and IShares SP
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and IShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and iShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of Amplify CWP i.e., Amplify CWP and IShares SP go up and down completely randomly.
Pair Corralation between Amplify CWP and IShares SP
Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 1.0 times more return on investment than IShares SP. However, Amplify CWP Enhanced is 1.0 times less risky than IShares SP. It trades about 0.3 of its potential returns per unit of risk. iShares SP 500 is currently generating about 0.3 per unit of risk. If you would invest 4,069 in Amplify CWP Enhanced on August 30, 2024 and sell it today you would earn a total of 196.00 from holding Amplify CWP Enhanced or generate 4.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify CWP Enhanced vs. iShares SP 500
Performance |
| Timeline |
| Amplify CWP Enhanced |
| iShares SP 500 |
Amplify CWP and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and IShares SP
The main advantage of trading using opposite Amplify CWP and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP'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 |
| IShares SP vs. iShares SP 500 | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |