Correlation Between Amplify ETF and IShares Global
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares Global 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 ETF and IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and iShares Global Clean, you can compare the effects of market volatilities on Amplify ETF and IShares Global 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 ETF with a short position of IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares Global.
Diversification Opportunities for Amplify ETF and IShares Global
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplify and IShares is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and iShares Global Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Clean and Amplify ETF 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 ETF Trust are associated (or correlated) with IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Clean has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares Global go up and down completely randomly.
Pair Corralation between Amplify ETF and IShares Global
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.8 times more return on investment than IShares Global. However, Amplify ETF Trust is 1.25 times less risky than IShares Global. It trades about 0.12 of its potential returns per unit of risk. iShares Global Clean is currently generating about -0.03 per unit of risk. If you would invest 4,205 in Amplify ETF Trust on August 24, 2024 and sell it today you would earn a total of 1,806 from holding Amplify ETF Trust or generate 42.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. iShares Global Clean
Performance |
| Timeline |
| Amplify ETF Trust |
| iShares Global Clean |
Amplify ETF and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and IShares Global
The main advantage of trading using opposite Amplify ETF and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global's long position.| Amplify ETF vs. Global X FinTech | Amplify ETF vs. Amplify Online Retail | Amplify ETF vs. First Trust Cloud | Amplify ETF vs. Amplify ETF Trust |
| IShares Global vs. iShares Exponential Technologies | IShares Global vs. Invesco Solar ETF | IShares Global vs. First Trust NASDAQ | IShares Global vs. Amplify 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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