Correlation Between Amplify ETF and ETRACS Monthly
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and ETRACS Monthly 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 ETRACS Monthly 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 ETRACS Monthly Pay, you can compare the effects of market volatilities on Amplify ETF and ETRACS Monthly 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 ETRACS Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and ETRACS Monthly.
Diversification Opportunities for Amplify ETF and ETRACS Monthly
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amplify and ETRACS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and ETRACS Monthly Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS Monthly Pay 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 ETRACS Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS Monthly Pay has no effect on the direction of Amplify ETF i.e., Amplify ETF and ETRACS Monthly go up and down completely randomly.
Pair Corralation between Amplify ETF and ETRACS Monthly
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.66 times more return on investment than ETRACS Monthly. However, Amplify ETF Trust is 1.51 times less risky than ETRACS Monthly. It trades about 0.26 of its potential returns per unit of risk. ETRACS Monthly Pay is currently generating about 0.0 per unit of risk. If you would invest 4,512 in Amplify ETF Trust on November 2, 2024 and sell it today you would earn a total of 417.00 from holding Amplify ETF Trust or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.98% |
| Values | Daily Returns |
Amplify ETF Trust vs. ETRACS Monthly Pay
Performance |
| Timeline |
| Amplify ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ETRACS Monthly Pay |
Amplify ETF and ETRACS Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and ETRACS Monthly
The main advantage of trading using opposite Amplify ETF and ETRACS Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, ETRACS Monthly 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 ETRACS Monthly will offset losses from the drop in ETRACS Monthly'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 |
| ETRACS Monthly vs. ETRACS 2xMonthly Pay | ETRACS Monthly vs. ETRACS Monthly Pay | ETRACS Monthly vs. ETRACS Monthly Pay | ETRACS Monthly vs. ETRACS 2xMonthly Pay |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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