Correlation Between Amplify ETF and SPDR Kensho
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and SPDR Kensho 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 SPDR Kensho 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 SPDR Kensho New, you can compare the effects of market volatilities on Amplify ETF and SPDR Kensho 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 SPDR Kensho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and SPDR Kensho.
Diversification Opportunities for Amplify ETF and SPDR Kensho
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and SPDR is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and SPDR Kensho New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Kensho New 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 SPDR Kensho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Kensho New has no effect on the direction of Amplify ETF i.e., Amplify ETF and SPDR Kensho go up and down completely randomly.
Pair Corralation between Amplify ETF and SPDR Kensho
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.98 times more return on investment than SPDR Kensho. However, Amplify ETF Trust is 1.02 times less risky than SPDR Kensho. It trades about 0.07 of its potential returns per unit of risk. SPDR Kensho New is currently generating about 0.05 per unit of risk. If you would invest 4,197 in Amplify ETF Trust on November 19, 2024 and sell it today you would earn a total of 1,931 from holding Amplify ETF Trust or generate 46.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. SPDR Kensho New
Performance |
| Timeline |
| Amplify ETF Trust |
| SPDR Kensho New |
Amplify ETF and SPDR Kensho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and SPDR Kensho
The main advantage of trading using opposite Amplify ETF and SPDR Kensho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, SPDR Kensho 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 SPDR Kensho will offset losses from the drop in SPDR Kensho'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 |
| SPDR Kensho vs. SPDR Kensho Clean | SPDR Kensho vs. SPDR SP Kensho | SPDR Kensho vs. SPDR SP Kensho | SPDR Kensho vs. SPDR SP Kensho |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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