Correlation Between Innovator Loup and Amplify
Can any of the company-specific risk be diversified away by investing in both Innovator Loup and Amplify 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 Innovator Loup and Amplify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovator Loup Frontier and Amplify, you can compare the effects of market volatilities on Innovator Loup and Amplify 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 Innovator Loup with a short position of Amplify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovator Loup and Amplify.
Diversification Opportunities for Innovator Loup and Amplify
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Innovator and Amplify is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Innovator Loup Frontier and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify and Innovator Loup 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 Innovator Loup Frontier are associated (or correlated) with Amplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify has no effect on the direction of Innovator Loup i.e., Innovator Loup and Amplify go up and down completely randomly.
Pair Corralation between Innovator Loup and Amplify
Given the investment horizon of 90 days Innovator Loup Frontier is expected to generate 1.26 times more return on investment than Amplify. However, Innovator Loup is 1.26 times more volatile than Amplify. It trades about 0.08 of its potential returns per unit of risk. Amplify is currently generating about 0.07 per unit of risk. If you would invest 4,671 in Innovator Loup Frontier on September 12, 2024 and sell it today you would earn a total of 809.00 from holding Innovator Loup Frontier or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 46.77% |
| Values | Daily Returns |
Innovator Loup Frontier vs. Amplify
Performance |
| Timeline |
| Innovator Loup Frontier |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Innovator Loup and Amplify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovator Loup and Amplify
The main advantage of trading using opposite Innovator Loup and Amplify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovator Loup position performs unexpectedly, Amplify 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 will offset losses from the drop in Amplify's long position.| Innovator Loup vs. First Trust Nasdaq | Innovator Loup vs. SPDR FactSet Innovative | Innovator Loup vs. Defiance Quantum ETF | Innovator Loup vs. SPDR Kensho New |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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