Correlation Between Amplify ETF and IShares Exponential
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares Exponential 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 IShares Exponential 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 iShares Exponential Technologies, you can compare the effects of market volatilities on Amplify ETF and IShares Exponential 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 IShares Exponential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares Exponential.
Diversification Opportunities for Amplify ETF and IShares Exponential
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amplify and IShares is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and iShares Exponential Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Exponential 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 IShares Exponential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Exponential has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares Exponential go up and down completely randomly.
Pair Corralation between Amplify ETF and IShares Exponential
Allowing for the 90-day total investment horizon Amplify ETF is expected to generate 1.59 times less return on investment than IShares Exponential. In addition to that, Amplify ETF is 3.42 times more volatile than iShares Exponential Technologies. It trades about 0.01 of its total potential returns per unit of risk. iShares Exponential Technologies is currently generating about 0.04 per unit of volatility. If you would invest 5,477 in iShares Exponential Technologies on August 24, 2024 and sell it today you would earn a total of 563.00 from holding iShares Exponential Technologies or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. iShares Exponential Technologi
Performance |
| Timeline |
| Amplify ETF Trust |
| iShares Exponential |
Amplify ETF and IShares Exponential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and IShares Exponential
The main advantage of trading using opposite Amplify ETF and IShares Exponential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, IShares Exponential 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 IShares Exponential will offset losses from the drop in IShares Exponential'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 |
| IShares Exponential vs. SPDR Kensho New | IShares Exponential vs. Global X FinTech | IShares Exponential vs. Invesco SP SmallCap | IShares Exponential vs. iShares Genomics Immunology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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