Correlation Between Amplify ETF and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares MSCI 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 MSCI 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 MSCI USA, you can compare the effects of market volatilities on Amplify ETF and IShares MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares MSCI.
Diversification Opportunities for Amplify ETF and IShares MSCI
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and IShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI USA has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares MSCI go up and down completely randomly.
Pair Corralation between Amplify ETF and IShares MSCI
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.9 times more return on investment than IShares MSCI. However, Amplify ETF Trust is 1.11 times less risky than IShares MSCI. It trades about 0.29 of its potential returns per unit of risk. iShares MSCI USA is currently generating about 0.12 per unit of risk. If you would invest 4,592 in Amplify ETF Trust on October 18, 2024 and sell it today you would earn a total of 337.00 from holding Amplify ETF Trust or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.27% |
| Values | Daily Returns |
Amplify ETF Trust vs. iShares MSCI USA
Performance |
| Timeline |
| Amplify ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI USA |
Amplify ETF and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and IShares MSCI
The main advantage of trading using opposite Amplify ETF and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, IShares MSCI 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 MSCI will offset losses from the drop in IShares MSCI's long position.| Amplify ETF vs. WisdomTree Cloud Computing | Amplify ETF vs. Global X Cloud | Amplify ETF vs. TrueShares Technology AI | Amplify ETF vs. Innovator Loup Frontier |
| IShares MSCI vs. JPMorgan Fundamental Data | IShares MSCI vs. Matthews China Discovery | IShares MSCI vs. Davis Select International | IShares MSCI vs. Dimensional 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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