Correlation Between Amplify ETF and AdvisorShares Gerber
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and AdvisorShares Gerber 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 Amplify ETF and AdvisorShares Gerber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and AdvisorShares Gerber Kawasaki, you can compare the effects of market volatilities on Amplify ETF and AdvisorShares Gerber 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 Amplify ETF with a short position of AdvisorShares Gerber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and AdvisorShares Gerber.
Diversification Opportunities for Amplify ETF and AdvisorShares Gerber
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amplify and AdvisorShares is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and AdvisorShares Gerber Kawasaki in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Gerber and Amplify 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 Amplify ETF Trust are associated (or correlated) with AdvisorShares Gerber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Gerber has no effect on the direction of Amplify ETF i.e., Amplify ETF and AdvisorShares Gerber go up and down completely randomly.
Pair Corralation between Amplify ETF and AdvisorShares Gerber
Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the AdvisorShares Gerber. In addition to that, Amplify ETF is 4.75 times more volatile than AdvisorShares Gerber Kawasaki. It trades about -0.22 of its total potential returns per unit of risk. AdvisorShares Gerber Kawasaki is currently generating about 0.13 per unit of volatility. If you would invest 2,176 in AdvisorShares Gerber Kawasaki on August 28, 2024 and sell it today you would earn a total of 63.00 from holding AdvisorShares Gerber Kawasaki or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. AdvisorShares Gerber Kawasaki
Performance |
| Timeline |
| Amplify ETF Trust |
| AdvisorShares Gerber |
Amplify ETF and AdvisorShares Gerber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and AdvisorShares Gerber
The main advantage of trading using opposite Amplify ETF and AdvisorShares Gerber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, AdvisorShares Gerber 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 AdvisorShares Gerber will offset losses from the drop in AdvisorShares Gerber's long position.| Amplify ETF vs. Cronos Group | Amplify ETF vs. AdvisorShares Pure Cannabis | Amplify ETF vs. Canopy Growth Corp | Amplify ETF vs. Curaleaf Holdings |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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