Correlation Between Goldman Sachs and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Future and Amplify ETF Trust, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Amplify ETF.
Diversification Opportunities for Goldman Sachs and Amplify ETF
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Amplify is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future 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 Goldman Sachs 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 Goldman Sachs Future 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 Goldman Sachs i.e., Goldman Sachs and Amplify ETF go up and down completely randomly.
Pair Corralation between Goldman Sachs and Amplify ETF
Given the investment horizon of 90 days Goldman Sachs Future is expected to under-perform the Amplify ETF. But the etf apears to be less risky and, when comparing its historical volatility, Goldman Sachs Future is 2.02 times less risky than Amplify ETF. The etf trades about -0.06 of its potential returns per unit of risk. The Amplify ETF Trust is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,348 in Amplify ETF Trust on August 26, 2024 and sell it today you would earn a total of 248.00 from holding Amplify ETF Trust or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Future vs. Amplify ETF Trust
Performance |
| Timeline |
| Goldman Sachs Future |
| Amplify ETF Trust |
Goldman Sachs and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Amplify ETF
The main advantage of trading using opposite Goldman Sachs and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Goldman Sachs ETF | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future |
| Amplify ETF vs. Vanguard Industrials Index | Amplify ETF vs. Vanguard Materials Index | Amplify ETF vs. Vanguard Consumer Discretionary | Amplify ETF vs. Vanguard Consumer Staples |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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