Correlation Between IShares Consumer and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both IShares Consumer 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 Consumer 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 Consumer Discretionary and Amplify Cash Flow, you can compare the effects of market volatilities on IShares Consumer 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 Consumer with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Consumer and Amplify Cash.
Diversification Opportunities for IShares Consumer and Amplify Cash
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Amplify is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Consumer Discretionary 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 Consumer 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 Consumer Discretionary 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 Consumer i.e., IShares Consumer and Amplify Cash go up and down completely randomly.
Pair Corralation between IShares Consumer and Amplify Cash
Considering the 90-day investment horizon iShares Consumer Discretionary is expected to generate 0.95 times more return on investment than Amplify Cash. However, iShares Consumer Discretionary is 1.05 times less risky than Amplify Cash. It trades about 0.11 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.07 per unit of risk. If you would invest 6,805 in iShares Consumer Discretionary on September 2, 2024 and sell it today you would earn a total of 2,964 from holding iShares Consumer Discretionary or generate 43.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.45% |
| Values | Daily Returns |
iShares Consumer Discretionary vs. Amplify Cash Flow
Performance |
| Timeline |
| iShares Consumer Dis |
| Amplify Cash Flow |
IShares Consumer and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Consumer and Amplify Cash
The main advantage of trading using opposite IShares Consumer and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Consumer 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 Consumer vs. iShares Consumer Staples | IShares Consumer vs. iShares Industrials ETF | IShares Consumer vs. iShares Basic Materials | IShares Consumer vs. iShares Utilities ETF |
| Amplify Cash vs. Global X Dow | Amplify Cash vs. AdvisorShares STAR Global | Amplify Cash vs. Global X Funds | Amplify Cash vs. FT Vest Dow |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance |