Correlation Between SmartETFs Dividend and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both SmartETFs Dividend and Amplify ETF 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 SmartETFs Dividend and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartETFs Dividend Builder and Amplify ETF Trust, you can compare the effects of market volatilities on SmartETFs Dividend and Amplify ETF 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 SmartETFs Dividend with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartETFs Dividend and Amplify ETF.
Diversification Opportunities for SmartETFs Dividend and Amplify ETF
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SmartETFs and Amplify is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SmartETFs Dividend Builder and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and SmartETFs Dividend 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 SmartETFs Dividend Builder are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of SmartETFs Dividend i.e., SmartETFs Dividend and Amplify ETF go up and down completely randomly.
Pair Corralation between SmartETFs Dividend and Amplify ETF
Given the investment horizon of 90 days SmartETFs Dividend Builder is expected to generate 0.54 times more return on investment than Amplify ETF. However, SmartETFs Dividend Builder is 1.86 times less risky than Amplify ETF. It trades about 0.26 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.1 per unit of risk. If you would invest 2,907 in SmartETFs Dividend Builder on November 29, 2024 and sell it today you would earn a total of 82.00 from holding SmartETFs Dividend Builder or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SmartETFs Dividend Builder vs. Amplify ETF Trust
Performance |
| Timeline |
| SmartETFs Dividend |
| Amplify ETF Trust |
SmartETFs Dividend and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartETFs Dividend and Amplify ETF
The main advantage of trading using opposite SmartETFs Dividend and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartETFs Dividend position performs unexpectedly, Amplify ETF 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 Amplify ETF will offset losses from the drop in Amplify ETF's long position.| SmartETFs Dividend vs. SmartETFs Asia Pacific | SmartETFs Dividend vs. Listed Funds Trust | SmartETFs Dividend vs. iShares AsiaPacific Dividend | SmartETFs Dividend vs. ProShares MSCI Emerging |
| Amplify ETF vs. Strategy Shares | Amplify ETF vs. Freedom Day Dividend | Amplify ETF vs. Franklin Templeton ETF | Amplify ETF vs. iShares MSCI China |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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