Correlation Between Empire State and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Empire State 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 Empire State and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Amplify Cash Flow, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Amplify Cash.
Diversification Opportunities for Empire State and Amplify Cash
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Empire and Amplify is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty 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 Empire State 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 Empire State Realty 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 Empire State i.e., Empire State and Amplify Cash go up and down completely randomly.
Pair Corralation between Empire State and Amplify Cash
Given the investment horizon of 90 days Empire State is expected to generate 2.36 times less return on investment than Amplify Cash. In addition to that, Empire State is 1.2 times more volatile than Amplify Cash Flow. It trades about 0.11 of its total potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.31 per unit of volatility. If you would invest 2,557 in Amplify Cash Flow on August 30, 2024 and sell it today you would earn a total of 182.00 from holding Amplify Cash Flow or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Empire State Realty vs. Amplify Cash Flow
Performance |
| Timeline |
| Empire State Realty |
| Amplify Cash Flow |
Empire State and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Amplify Cash
The main advantage of trading using opposite Empire State and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Amplify Cash vs. Freedom Day Dividend | Amplify Cash vs. Franklin Templeton ETF | Amplify Cash vs. iShares MSCI China | Amplify Cash vs. Tidal Trust II |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |