Correlation Between IShares Expanded and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and Amplify ETF 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 IShares Expanded and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Expanded Tech Software and Amplify ETF Trust, you can compare the effects of market volatilities on IShares Expanded and Amplify ETF 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 IShares Expanded with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and Amplify ETF.
Diversification Opportunities for IShares Expanded and Amplify ETF
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech Software and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and IShares Expanded 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 iShares Expanded Tech Software are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of IShares Expanded i.e., IShares Expanded and Amplify ETF go up and down completely randomly.
Pair Corralation between IShares Expanded and Amplify ETF
Considering the 90-day investment horizon iShares Expanded Tech Software is expected to generate 1.04 times more return on investment than Amplify ETF. However, IShares Expanded is 1.04 times more volatile than Amplify ETF Trust. It trades about 0.19 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.11 per unit of risk. If you would invest 7,794 in iShares Expanded Tech Software on September 1, 2024 and sell it today you would earn a total of 2,682 from holding iShares Expanded Tech Software or generate 34.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
iShares Expanded Tech Software vs. Amplify ETF Trust
Performance |
| Timeline |
| iShares Expanded Tech |
| Amplify ETF Trust |
IShares Expanded and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and Amplify ETF
The main advantage of trading using opposite IShares Expanded and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, Amplify ETF 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 ETF will offset losses from the drop in Amplify ETF's long position.| IShares Expanded vs. First Trust Exchange Traded | IShares Expanded vs. Ultimus Managers Trust | IShares Expanded vs. Horizon Kinetics Medical | IShares Expanded vs. Harbor Health Care |
| Amplify ETF vs. VanEck Israel ETF | Amplify ETF vs. iShares MSCI Israel | Amplify ETF vs. ARK Israel Innovative | Amplify ETF vs. ALPS Disruptive Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |