Correlation Between Amplify CWP and WKLY
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and WKLY 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 WKLY 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 WKLY, you can compare the effects of market volatilities on Amplify CWP and WKLY 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 WKLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and WKLY.
Diversification Opportunities for Amplify CWP and WKLY
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amplify and WKLY is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and WKLY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WKLY 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 WKLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WKLY has no effect on the direction of Amplify CWP i.e., Amplify CWP and WKLY go up and down completely randomly.
Pair Corralation between Amplify CWP and WKLY
If you would invest 4,032 in Amplify CWP Enhanced on November 3, 2024 and sell it today you would earn a total of 215.00 from holding Amplify CWP Enhanced or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Amplify CWP Enhanced vs. WKLY
Performance |
| Timeline |
| Amplify CWP Enhanced |
| WKLY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amplify CWP and WKLY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and WKLY
The main advantage of trading using opposite Amplify CWP and WKLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, WKLY 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 WKLY will offset losses from the drop in WKLY'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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