Correlation Between Amplify ETF and IShares
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares 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 IShares 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 IShares, you can compare the effects of market volatilities on Amplify ETF and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares.
Diversification Opportunities for Amplify ETF and IShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplify and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares go up and down completely randomly.
Pair Corralation between Amplify ETF and IShares
If you would invest 4,701 in Amplify ETF Trust on November 28, 2024 and sell it today you would earn a total of 2,999 from holding Amplify ETF Trust or generate 63.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. IShares
Performance |
| Timeline |
| Amplify ETF Trust |
| IShares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Amplify ETF and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and IShares
The main advantage of trading using opposite Amplify ETF and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.| Amplify ETF vs. First Trust NASDAQ | Amplify ETF vs. Global X Cybersecurity | Amplify ETF vs. First Trust Cloud | Amplify ETF vs. Robo Global Robotics |
| IShares vs. First Trust Nasdaq | IShares vs. Global X Robotics | IShares vs. Robo Global Robotics | IShares vs. iShares Cybersecurity 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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