Correlation Between Amplify and Amplify High
Can any of the company-specific risk be diversified away by investing in both Amplify and Amplify High 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 and Amplify High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify and Amplify High Income, you can compare the effects of market volatilities on Amplify and Amplify High 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 with a short position of Amplify High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify and Amplify High.
Diversification Opportunities for Amplify and Amplify High
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and Amplify is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amplify and Amplify High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify High Income and Amplify 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 are associated (or correlated) with Amplify High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify High Income has no effect on the direction of Amplify i.e., Amplify and Amplify High go up and down completely randomly.
Pair Corralation between Amplify and Amplify High
If you would invest 1,183 in Amplify High Income on August 31, 2024 and sell it today you would earn a total of 28.00 from holding Amplify High Income or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amplify vs. Amplify High Income
Performance |
| Timeline |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amplify High Income |
Amplify and Amplify High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify and Amplify High
The main advantage of trading using opposite Amplify and Amplify High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify position performs unexpectedly, Amplify High 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 High will offset losses from the drop in Amplify High's long position.| Amplify vs. Xtrackers MSCI Emerging | Amplify vs. FlexShares Morningstar Emerging | Amplify vs. First Trust Emerging |
| Amplify High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow ETF Trust |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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