Correlation Between Formidable Fortress and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Formidable Fortress 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 Formidable Fortress and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Formidable Fortress ETF and Amplify ETF Trust, you can compare the effects of market volatilities on Formidable Fortress 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 Formidable Fortress with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formidable Fortress and Amplify ETF.
Diversification Opportunities for Formidable Fortress and Amplify ETF
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Formidable and Amplify is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Formidable Fortress ETF 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 Formidable Fortress 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 Formidable Fortress ETF 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 Formidable Fortress i.e., Formidable Fortress and Amplify ETF go up and down completely randomly.
Pair Corralation between Formidable Fortress and Amplify ETF
Given the investment horizon of 90 days Formidable Fortress is expected to generate 1.04 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, Formidable Fortress ETF is 1.24 times less risky than Amplify ETF. It trades about 0.07 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,416 in Amplify ETF Trust on September 12, 2024 and sell it today you would earn a total of 438.00 from holding Amplify ETF Trust or generate 18.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Formidable Fortress ETF vs. Amplify ETF Trust
Performance |
| Timeline |
| Formidable Fortress ETF |
| Amplify ETF Trust |
Formidable Fortress and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formidable Fortress and Amplify ETF
The main advantage of trading using opposite Formidable Fortress and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formidable Fortress 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.| Formidable Fortress vs. Sonida Senior Living | Formidable Fortress vs. The9 Ltd ADR | Formidable Fortress vs. VanEck Vectors ETF | Formidable Fortress vs. Nine Energy Service |
| Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Aquagold International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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