Correlation Between Amplify ETF and Direxion
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and Direxion 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 Direxion 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 Direxion, you can compare the effects of market volatilities on Amplify ETF and Direxion 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 Direxion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and Direxion.
Diversification Opportunities for Amplify ETF and Direxion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplify and Direxion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Direxion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direxion 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 Direxion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direxion has no effect on the direction of Amplify ETF i.e., Amplify ETF and Direxion go up and down completely randomly.
Pair Corralation between Amplify ETF and Direxion
If you would invest (100.00) in Direxion on December 11, 2024 and sell it today you would earn a total of 100.00 from holding Direxion or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. Direxion
Performance |
| Timeline |
| Amplify ETF Trust |
| Direxion |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Amplify ETF and Direxion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and Direxion
The main advantage of trading using opposite Amplify ETF and Direxion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, Direxion 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 Direxion will offset losses from the drop in Direxion'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 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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