Correlation Between Harbor ETF and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Harbor ETF 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 Harbor ETF and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor ETF Trust and Amplify ETF Trust, you can compare the effects of market volatilities on Harbor ETF 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 Harbor ETF with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor ETF and Amplify ETF.
Diversification Opportunities for Harbor ETF and Amplify ETF
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harbor and Amplify is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust 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 Harbor ETF 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 Harbor ETF Trust 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 Harbor ETF i.e., Harbor ETF and Amplify ETF go up and down completely randomly.
Pair Corralation between Harbor ETF and Amplify ETF
Given the investment horizon of 90 days Harbor ETF Trust is expected to generate 0.46 times more return on investment than Amplify ETF. However, Harbor ETF Trust is 2.16 times less risky than Amplify ETF. It trades about 0.09 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.45 per unit of risk. If you would invest 2,335 in Harbor ETF Trust on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Harbor ETF Trust or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor ETF Trust vs. Amplify ETF Trust
Performance |
| Timeline |
| Harbor ETF Trust |
| Amplify ETF Trust |
Harbor ETF and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor ETF and Amplify ETF
The main advantage of trading using opposite Harbor ETF and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor ETF 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.| Harbor ETF vs. Tidal Trust II | Harbor ETF vs. EA Series Trust | Harbor ETF vs. ProShares VIX Mid Term | Harbor ETF vs. ProShares VIX Short Term |
| Amplify ETF vs. Franklin Templeton ETF | Amplify ETF vs. Tidal Trust II | Amplify ETF vs. Tidal Trust II | Amplify ETF vs. iShares Dividend and |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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