Correlation Between Amplify ETF and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and Martin Currie 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 Martin Currie 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 Martin Currie Sustainable, you can compare the effects of market volatilities on Amplify ETF and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and Martin Currie.
Diversification Opportunities for Amplify ETF and Martin Currie
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Martin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Amplify ETF i.e., Amplify ETF and Martin Currie go up and down completely randomly.
Pair Corralation between Amplify ETF and Martin Currie
Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the Martin Currie. In addition to that, Amplify ETF is 4.29 times more volatile than Martin Currie Sustainable. It trades about -0.22 of its total potential returns per unit of risk. Martin Currie Sustainable is currently generating about -0.3 per unit of volatility. If you would invest 1,450 in Martin Currie Sustainable on August 28, 2024 and sell it today you would lose (103.00) from holding Martin Currie Sustainable or give up 7.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. Martin Currie Sustainable
Performance |
| Timeline |
| Amplify ETF Trust |
| Martin Currie Sustainable |
Amplify ETF and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and Martin Currie
The main advantage of trading using opposite Amplify ETF and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie'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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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