Correlation Between Amplify Online and AdvisorShares
Can any of the company-specific risk be diversified away by investing in both Amplify Online and AdvisorShares 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 AdvisorShares 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 AdvisorShares, you can compare the effects of market volatilities on Amplify Online and AdvisorShares 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 AdvisorShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Online and AdvisorShares.
Diversification Opportunities for Amplify Online and AdvisorShares
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and AdvisorShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Online Retail and AdvisorShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares 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 AdvisorShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares has no effect on the direction of Amplify Online i.e., Amplify Online and AdvisorShares go up and down completely randomly.
Pair Corralation between Amplify Online and AdvisorShares
If you would invest 6,168 in Amplify Online Retail on August 30, 2024 and sell it today you would earn a total of 633.00 from holding Amplify Online Retail or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Amplify Online Retail vs. AdvisorShares
Performance |
| Timeline |
| Amplify Online Retail |
| AdvisorShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amplify Online and AdvisorShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Online and AdvisorShares
The main advantage of trading using opposite Amplify Online and AdvisorShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Online position performs unexpectedly, AdvisorShares 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 AdvisorShares will offset losses from the drop in AdvisorShares' 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 |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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