Correlation Between Amplify CWP and SGI Enhanced
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and SGI Enhanced 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 SGI Enhanced 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 SGI Enhanced Nasdaq 100, you can compare the effects of market volatilities on Amplify CWP and SGI Enhanced 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 SGI Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and SGI Enhanced.
Diversification Opportunities for Amplify CWP and SGI Enhanced
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and SGI is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and SGI Enhanced Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGI Enhanced Nasdaq 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 SGI Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGI Enhanced Nasdaq has no effect on the direction of Amplify CWP i.e., Amplify CWP and SGI Enhanced go up and down completely randomly.
Pair Corralation between Amplify CWP and SGI Enhanced
Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 0.42 times more return on investment than SGI Enhanced. However, Amplify CWP Enhanced is 2.39 times less risky than SGI Enhanced. It trades about 0.3 of its potential returns per unit of risk. SGI Enhanced Nasdaq 100 is currently generating about 0.05 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. SGI Enhanced Nasdaq 100
Performance |
| Timeline |
| Amplify CWP Enhanced |
| SGI Enhanced Nasdaq |
Amplify CWP and SGI Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and SGI Enhanced
The main advantage of trading using opposite Amplify CWP and SGI Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, SGI Enhanced 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 SGI Enhanced will offset losses from the drop in SGI Enhanced'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 |
| SGI Enhanced vs. Global X SP | SGI Enhanced vs. Amplify CWP Enhanced | SGI Enhanced vs. Global X Russell | SGI Enhanced vs. JPMorgan Nasdaq Equity |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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