Correlation Between US Global and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global GO and Amplify ETF Trust, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Amplify ETF.
Diversification Opportunities for US Global and Amplify ETF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GOAU and Amplify is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding US Global GO 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 US Global 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 US Global GO 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 US Global i.e., US Global and Amplify ETF go up and down completely randomly.
Pair Corralation between US Global and Amplify ETF
Given the investment horizon of 90 days US Global GO is expected to generate 0.78 times more return on investment than Amplify ETF. However, US Global GO is 1.28 times less risky than Amplify ETF. It trades about 0.08 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.06 per unit of risk. If you would invest 1,570 in US Global GO on November 9, 2024 and sell it today you would earn a total of 672.00 from holding US Global GO or generate 42.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global GO vs. Amplify ETF Trust
Performance |
| Timeline |
| US Global GO |
| Amplify ETF Trust |
US Global and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Amplify ETF
The main advantage of trading using opposite US Global and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Sprott Gold Miners | US Global vs. Global X Gold | US Global vs. Sprott Junior Gold | US Global vs. Amplify ETF Trust |
| Amplify ETF vs. Global X Silver | Amplify ETF vs. VanEck Junior Gold | Amplify ETF vs. iShares MSCI Global | Amplify ETF vs. Sprott Physical Silver |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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