Correlation Between Amplify CWP and ProShares
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and ProShares 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 ProShares 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 ProShares SP 500, you can compare the effects of market volatilities on Amplify CWP and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and ProShares.
Diversification Opportunities for Amplify CWP and ProShares
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and ProShares is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and ProShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP 500 has no effect on the direction of Amplify CWP i.e., Amplify CWP and ProShares go up and down completely randomly.
Pair Corralation between Amplify CWP and ProShares
Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 0.97 times more return on investment than ProShares. However, Amplify CWP Enhanced is 1.03 times less risky than ProShares. It trades about 0.16 of its potential returns per unit of risk. ProShares SP 500 is currently generating about 0.14 per unit of risk. If you would invest 3,773 in Amplify CWP Enhanced on August 29, 2024 and sell it today you would earn a total of 492.00 from holding Amplify CWP Enhanced or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify CWP Enhanced vs. ProShares SP 500
Performance |
| Timeline |
| Amplify CWP Enhanced |
| ProShares SP 500 |
Amplify CWP and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and ProShares
The main advantage of trading using opposite Amplify CWP and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' 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 |
| ProShares vs. iShares Core Dividend | ProShares vs. SPDR SP Dividend | ProShares vs. Invesco SP 500 | ProShares vs. Vanguard Dividend Appreciation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |