Correlation Between Amplify ETF and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and ProShares Short 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 ProShares Short 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 ProShares Short 7 10, you can compare the effects of market volatilities on Amplify ETF and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and ProShares Short.
Diversification Opportunities for Amplify ETF and ProShares Short
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and ProShares is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and ProShares Short 7 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short 7 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short 7 has no effect on the direction of Amplify ETF i.e., Amplify ETF and ProShares Short go up and down completely randomly.
Pair Corralation between Amplify ETF and ProShares Short
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 2.71 times more return on investment than ProShares Short. However, Amplify ETF is 2.71 times more volatile than ProShares Short 7 10. It trades about 0.07 of its potential returns per unit of risk. ProShares Short 7 10 is currently generating about 0.05 per unit of risk. If you would invest 3,307 in Amplify ETF Trust on November 2, 2024 and sell it today you would earn a total of 1,622 from holding Amplify ETF Trust or generate 49.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.03% |
| Values | Daily Returns |
Amplify ETF Trust vs. ProShares Short 7 10
Performance |
| Timeline |
| Amplify ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProShares Short 7 |
Amplify ETF and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and ProShares Short
The main advantage of trading using opposite Amplify ETF and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short'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 |
| ProShares Short vs. ProShares Short 20 | ProShares Short vs. ProShares Short High | ProShares Short vs. ProShares UltraShort 7 10 | ProShares Short vs. ProShares UltraPro Short |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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