Correlation Between IShares Select and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both IShares Select and Amplify Cash 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 IShares Select and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Select Dividend and Amplify Cash Flow, you can compare the effects of market volatilities on IShares Select and Amplify Cash 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 IShares Select with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Select and Amplify Cash.
Diversification Opportunities for IShares Select and Amplify Cash
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares Select Dividend and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and IShares Select 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 iShares Select Dividend are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of IShares Select i.e., IShares Select and Amplify Cash go up and down completely randomly.
Pair Corralation between IShares Select and Amplify Cash
Considering the 90-day investment horizon iShares Select Dividend is expected to generate 0.72 times more return on investment than Amplify Cash. However, iShares Select Dividend is 1.38 times less risky than Amplify Cash. It trades about 0.18 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.1 per unit of risk. If you would invest 12,127 in iShares Select Dividend on September 1, 2024 and sell it today you would earn a total of 2,214 from holding iShares Select Dividend or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Select Dividend vs. Amplify Cash Flow
Performance |
| Timeline |
| iShares Select Dividend |
| Amplify Cash Flow |
IShares Select and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Select and Amplify Cash
The main advantage of trading using opposite IShares Select and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Select position performs unexpectedly, Amplify Cash 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 Cash will offset losses from the drop in Amplify Cash's long position.| IShares Select vs. SPDR SP Dividend | IShares Select vs. Vanguard Dividend Appreciation | IShares Select vs. iShares Core High | IShares Select vs. iShares Preferred and |
| Amplify Cash vs. Invesco Actively Managed | Amplify Cash vs. iShares Trust | Amplify Cash vs. Xtrackers MSCI Emerging | Amplify Cash vs. iShares MSCI Emerging |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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