Correlation Between Amplify ETF and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and Guinness Atkinson 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 ETF and Guinness Atkinson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and Guinness Atkinson Asset, you can compare the effects of market volatilities on Amplify ETF and Guinness Atkinson 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 ETF with a short position of Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and Guinness Atkinson.
Diversification Opportunities for Amplify ETF and Guinness Atkinson
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Guinness is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Guinness Atkinson Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson Asset and Amplify ETF 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 ETF Trust are associated (or correlated) with Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson Asset has no effect on the direction of Amplify ETF i.e., Amplify ETF and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Amplify ETF and Guinness Atkinson
If you would invest 6,445 in Amplify ETF Trust on September 13, 2024 and sell it today you would earn a total of 567.40 from holding Amplify ETF Trust or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Amplify ETF Trust vs. Guinness Atkinson Asset
Performance |
| Timeline |
| Amplify ETF Trust |
| Guinness Atkinson Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Amplify ETF and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and Guinness Atkinson
The main advantage of trading using opposite Amplify ETF and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Amplify ETF vs. Global X Thematic | Amplify ETF vs. Aquagold International | Amplify ETF vs. Morningstar Unconstrained Allocation | Amplify ETF vs. Thrivent High Yield |
| Guinness Atkinson vs. SmartETFs Smart Transportation | Guinness Atkinson vs. Global X Thematic | Guinness Atkinson vs. Franklin Disruptive Commerce |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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