Correlation Between SPDR Kensho and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Kensho and Amplify ETF 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 SPDR Kensho and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Kensho New and Amplify ETF Trust, you can compare the effects of market volatilities on SPDR Kensho and Amplify ETF 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 SPDR Kensho with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Kensho and Amplify ETF.
Diversification Opportunities for SPDR Kensho and Amplify ETF
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Amplify is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Kensho New and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and SPDR Kensho 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 SPDR Kensho New are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of SPDR Kensho i.e., SPDR Kensho and Amplify ETF go up and down completely randomly.
Pair Corralation between SPDR Kensho and Amplify ETF
Given the investment horizon of 90 days SPDR Kensho New is expected to generate 0.19 times more return on investment than Amplify ETF. However, SPDR Kensho New is 5.32 times less risky than Amplify ETF. It trades about 0.23 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.16 per unit of risk. If you would invest 5,028 in SPDR Kensho New on August 30, 2024 and sell it today you would earn a total of 398.00 from holding SPDR Kensho New or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Kensho New vs. Amplify ETF Trust
Performance |
| Timeline |
| SPDR Kensho New |
| Amplify ETF Trust |
SPDR Kensho and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Kensho and Amplify ETF
The main advantage of trading using opposite SPDR Kensho and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Kensho position performs unexpectedly, Amplify ETF 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 ETF will offset losses from the drop in Amplify ETF's long position.| SPDR Kensho vs. BlackRock Future Health | SPDR Kensho vs. Global X Thematic | SPDR Kensho vs. Aquagold International | SPDR Kensho vs. Morningstar Unconstrained Allocation |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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