Correlation Between IShares Technology and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both IShares Technology and Amplify Thematic 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 Technology and Amplify Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Technology ETF and Amplify Thematic All Stars, you can compare the effects of market volatilities on IShares Technology and Amplify Thematic 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 Technology with a short position of Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Technology and Amplify Thematic.
Diversification Opportunities for IShares Technology and Amplify Thematic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding iShares Technology ETF and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All and IShares Technology 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 Technology ETF are associated (or correlated) with Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of IShares Technology i.e., IShares Technology and Amplify Thematic go up and down completely randomly.
Pair Corralation between IShares Technology and Amplify Thematic
Considering the 90-day investment horizon iShares Technology ETF is expected to generate 0.88 times more return on investment than Amplify Thematic. However, iShares Technology ETF is 1.14 times less risky than Amplify Thematic. It trades about 0.11 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.06 per unit of risk. If you would invest 7,899 in iShares Technology ETF on August 26, 2024 and sell it today you would earn a total of 8,006 from holding iShares Technology ETF or generate 101.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Technology ETF vs. Amplify Thematic All Stars
Performance |
| Timeline |
| iShares Technology ETF |
| Amplify Thematic All |
IShares Technology and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Technology and Amplify Thematic
The main advantage of trading using opposite IShares Technology and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Technology position performs unexpectedly, Amplify Thematic 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 Thematic will offset losses from the drop in Amplify Thematic's long position.| IShares Technology vs. Invesco DWA Utilities | IShares Technology vs. Invesco Dynamic Large | IShares Technology vs. Invesco Dynamic Large | IShares Technology vs. HUMANA INC |
| Amplify Thematic vs. Invesco DWA Utilities | Amplify Thematic vs. Invesco Dynamic Large | Amplify Thematic vs. Invesco Dynamic Large | Amplify Thematic vs. HUMANA INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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