Correlation Between IShares ESG and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both IShares ESG 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 IShares ESG and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares ESG Aware and Amplify ETF Trust, you can compare the effects of market volatilities on IShares ESG 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 IShares ESG with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares ESG and Amplify ETF.
Diversification Opportunities for IShares ESG and Amplify ETF
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Amplify is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares ESG Aware 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 IShares ESG 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 ESG Aware 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 IShares ESG i.e., IShares ESG and Amplify ETF go up and down completely randomly.
Pair Corralation between IShares ESG and Amplify ETF
Given the investment horizon of 90 days IShares ESG is expected to generate 157.24 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, iShares ESG Aware is 123.2 times less risky than Amplify ETF. It trades about 0.07 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Amplify ETF Trust on August 23, 2024 and sell it today you would earn a total of 2,317 from holding Amplify ETF Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
iShares ESG Aware vs. Amplify ETF Trust
Performance |
| Timeline |
| iShares ESG Aware |
| Amplify ETF Trust |
IShares ESG and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares ESG and Amplify ETF
The main advantage of trading using opposite IShares ESG and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares ESG 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.| IShares ESG vs. Electric Car | IShares ESG vs. JNS Holdings Corp | IShares ESG vs. Plyzer Technologies | IShares ESG vs. Visium Technologies |
| Amplify ETF vs. Franklin Templeton ETF | Amplify ETF vs. Tidal Trust II | Amplify ETF vs. Tidal Trust II | Amplify ETF vs. iShares Dividend and |
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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