Correlation Between IShares Russell and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both IShares Russell and Amplify Cash 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 IShares Russell and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Russell 1000 and Amplify Cash Flow, you can compare the effects of market volatilities on IShares Russell and Amplify Cash 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 IShares Russell with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Russell and Amplify Cash.
Diversification Opportunities for IShares Russell and Amplify Cash
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell 1000 and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and IShares Russell 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 iShares Russell 1000 are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of IShares Russell i.e., IShares Russell and Amplify Cash go up and down completely randomly.
Pair Corralation between IShares Russell and Amplify Cash
Considering the 90-day investment horizon IShares Russell is expected to generate 1.35 times less return on investment than Amplify Cash. But when comparing it to its historical volatility, iShares Russell 1000 is 1.3 times less risky than Amplify Cash. It trades about 0.17 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,965 in Amplify Cash Flow on August 30, 2024 and sell it today you would earn a total of 202.00 from holding Amplify Cash Flow or generate 6.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Russell 1000 vs. Amplify Cash Flow
Performance |
| Timeline |
| iShares Russell 1000 |
| Amplify Cash Flow |
IShares Russell and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Russell and Amplify Cash
The main advantage of trading using opposite IShares Russell and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Russell position performs unexpectedly, Amplify Cash 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 Amplify Cash will offset losses from the drop in Amplify Cash's long position.| IShares Russell vs. iShares Russell 1000 | IShares Russell vs. iShares Russell 2000 | IShares Russell vs. iShares Russell 2000 | IShares Russell vs. iShares Russell Mid Cap |
| Amplify Cash vs. Invesco Actively Managed | Amplify Cash vs. iShares Trust | Amplify Cash vs. Xtrackers MSCI Emerging | Amplify Cash vs. iShares MSCI Emerging |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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