Correlation Between GraniteShares HIPS and Amplify High
Can any of the company-specific risk be diversified away by investing in both GraniteShares HIPS and Amplify High 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 GraniteShares HIPS and Amplify High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares HIPS High and Amplify High Income, you can compare the effects of market volatilities on GraniteShares HIPS and Amplify High 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 GraniteShares HIPS with a short position of Amplify High. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares HIPS and Amplify High.
Diversification Opportunities for GraniteShares HIPS and Amplify High
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GraniteShares and Amplify is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares HIPS High and Amplify High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify High Income and GraniteShares HIPS 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 GraniteShares HIPS High are associated (or correlated) with Amplify High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify High Income has no effect on the direction of GraniteShares HIPS i.e., GraniteShares HIPS and Amplify High go up and down completely randomly.
Pair Corralation between GraniteShares HIPS and Amplify High
Given the investment horizon of 90 days GraniteShares HIPS High is expected to generate 1.21 times more return on investment than Amplify High. However, GraniteShares HIPS is 1.21 times more volatile than Amplify High Income. It trades about 0.21 of its potential returns per unit of risk. Amplify High Income is currently generating about 0.15 per unit of risk. If you would invest 1,253 in GraniteShares HIPS High on September 2, 2024 and sell it today you would earn a total of 84.00 from holding GraniteShares HIPS High or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares HIPS High vs. Amplify High Income
Performance |
| Timeline |
| GraniteShares HIPS High |
| Amplify High Income |
GraniteShares HIPS and Amplify High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares HIPS and Amplify High
The main advantage of trading using opposite GraniteShares HIPS and Amplify High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares HIPS position performs unexpectedly, Amplify High 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 High will offset losses from the drop in Amplify High's long position.| GraniteShares HIPS vs. Amplify High Income | GraniteShares HIPS vs. Global X Alternative | GraniteShares HIPS vs. Saba Closed End Funds | GraniteShares HIPS vs. Arrow ETF Trust |
| Amplify High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow ETF Trust |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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