Correlation Between Amplify Online and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both Amplify Online and Innovator ETFs 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 Online and Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Online Retail and Innovator ETFs Trust, you can compare the effects of market volatilities on Amplify Online and Innovator ETFs 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 Online with a short position of Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Online and Innovator ETFs.
Diversification Opportunities for Amplify Online and Innovator ETFs
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and Innovator is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Online Retail and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust and Amplify Online 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 Online Retail are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of Amplify Online i.e., Amplify Online and Innovator ETFs go up and down completely randomly.
Pair Corralation between Amplify Online and Innovator ETFs
Given the investment horizon of 90 days Amplify Online Retail is expected to generate 1.56 times more return on investment than Innovator ETFs. However, Amplify Online is 1.56 times more volatile than Innovator ETFs Trust. It trades about 0.07 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.07 per unit of risk. If you would invest 4,136 in Amplify Online Retail on August 30, 2024 and sell it today you would earn a total of 2,665 from holding Amplify Online Retail or generate 64.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Online Retail vs. Innovator ETFs Trust
Performance |
| Timeline |
| Amplify Online Retail |
| Innovator ETFs Trust |
Amplify Online and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Online and Innovator ETFs
The main advantage of trading using opposite Amplify Online and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Online position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| Amplify Online vs. ProShares Online Retail | Amplify Online vs. WisdomTree Cloud Computing | Amplify Online vs. Amplify ETF Trust | Amplify Online vs. Global X Cloud |
| Innovator ETFs vs. Innovator IBD 50 | Innovator ETFs vs. Marketwise | Innovator ETFs vs. MoonLake Immunotherapeutics | Innovator ETFs vs. Streamline Health Solutions |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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