Correlation Between Amplify ETF and Roundhill Video
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and Roundhill Video 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 Roundhill Video 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 Roundhill Video Games, you can compare the effects of market volatilities on Amplify ETF and Roundhill Video 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 Roundhill Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and Roundhill Video.
Diversification Opportunities for Amplify ETF and Roundhill Video
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and Roundhill is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Roundhill Video Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Video Games 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 Roundhill Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Video Games has no effect on the direction of Amplify ETF i.e., Amplify ETF and Roundhill Video go up and down completely randomly.
Pair Corralation between Amplify ETF and Roundhill Video
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 1.06 times more return on investment than Roundhill Video. However, Amplify ETF is 1.06 times more volatile than Roundhill Video Games. It trades about 0.09 of its potential returns per unit of risk. Roundhill Video Games is currently generating about 0.07 per unit of risk. If you would invest 4,225 in Amplify ETF Trust on September 2, 2024 and sell it today you would earn a total of 1,937 from holding Amplify ETF Trust or generate 45.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. Roundhill Video Games
Performance |
| Timeline |
| Amplify ETF Trust |
| Roundhill Video Games |
Amplify ETF and Roundhill Video Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and Roundhill Video
The main advantage of trading using opposite Amplify ETF and Roundhill Video positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, Roundhill Video 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 Roundhill Video will offset losses from the drop in Roundhill Video'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 |
| Roundhill Video vs. VanEck Video Gaming | Roundhill Video vs. Roundhill Sports Betting | Roundhill Video vs. Amplify ETF Trust | Roundhill Video vs. Global X Video |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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