Correlation Between Amplify Online and Invesco China
Can any of the company-specific risk be diversified away by investing in both Amplify Online and Invesco China 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 Invesco China 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 Invesco China Technology, you can compare the effects of market volatilities on Amplify Online and Invesco China 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 Invesco China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Online and Invesco China.
Diversification Opportunities for Amplify Online and Invesco China
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Invesco is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Online Retail and Invesco China Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco China Technology 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 Invesco China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco China Technology has no effect on the direction of Amplify Online i.e., Amplify Online and Invesco China go up and down completely randomly.
Pair Corralation between Amplify Online and Invesco China
Given the investment horizon of 90 days Amplify Online Retail is expected to generate 0.49 times more return on investment than Invesco China. However, Amplify Online Retail is 2.05 times less risky than Invesco China. It trades about 0.34 of its potential returns per unit of risk. Invesco China Technology is currently generating about -0.04 per unit of risk. If you would invest 6,159 in Amplify Online Retail on August 29, 2024 and sell it today you would earn a total of 642.00 from holding Amplify Online Retail or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Online Retail vs. Invesco China Technology
Performance |
| Timeline |
| Amplify Online Retail |
| Invesco China Technology |
Amplify Online and Invesco China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Online and Invesco China
The main advantage of trading using opposite Amplify Online and Invesco China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Online position performs unexpectedly, Invesco China 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 Invesco China will offset losses from the drop in Invesco China's 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 |
| Invesco China vs. KraneShares CSI China | Invesco China vs. iShares MSCI China | Invesco China vs. Global X MSCI | Invesco China vs. Xtrackers Harvest CSI |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |