Correlation Between IShares Expanded and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both IShares Expanded and Amplify Thematic 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 Thematic 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 Thematic All Stars, you can compare the effects of market volatilities on IShares Expanded and Amplify Thematic 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 Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and Amplify Thematic.
Diversification Opportunities for IShares Expanded and Amplify Thematic
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Expanded Tech Software and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All 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 Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of IShares Expanded i.e., IShares Expanded and Amplify Thematic go up and down completely randomly.
Pair Corralation between IShares Expanded and Amplify Thematic
Considering the 90-day investment horizon iShares Expanded Tech Software is expected to generate 1.07 times more return on investment than Amplify Thematic. However, IShares Expanded is 1.07 times more volatile than Amplify Thematic All Stars. It trades about 0.44 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.27 per unit of risk. If you would invest 9,220 in iShares Expanded Tech Software on August 26, 2024 and sell it today you would earn a total of 1,384 from holding iShares Expanded Tech Software or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Expanded Tech Software vs. Amplify Thematic All Stars
Performance |
| Timeline |
| iShares Expanded Tech |
| Amplify Thematic All |
IShares Expanded and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Expanded and Amplify Thematic
The main advantage of trading using opposite IShares Expanded and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, Amplify Thematic 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 Thematic will offset losses from the drop in Amplify Thematic'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 Thematic vs. Amplify BlackSwan ISWN | Amplify Thematic vs. Global X Thematic | Amplify Thematic vs. Virtus 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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