Correlation Between Amplify ETF and AdvisorShares Trust
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and AdvisorShares Trust 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 Trust 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 Trust , you can compare the effects of market volatilities on Amplify ETF and AdvisorShares Trust 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 Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and AdvisorShares Trust.
Diversification Opportunities for Amplify ETF and AdvisorShares Trust
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amplify and AdvisorShares is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and AdvisorShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Trust 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 Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Trust has no effect on the direction of Amplify ETF i.e., Amplify ETF and AdvisorShares Trust go up and down completely randomly.
Pair Corralation between Amplify ETF and AdvisorShares Trust
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.52 times more return on investment than AdvisorShares Trust. However, Amplify ETF Trust is 1.93 times less risky than AdvisorShares Trust. It trades about -0.07 of its potential returns per unit of risk. AdvisorShares Trust is currently generating about -0.05 per unit of risk. If you would invest 83.00 in Amplify ETF Trust on October 21, 2024 and sell it today you would lose (4.00) from holding Amplify ETF Trust or give up 4.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. AdvisorShares Trust
Performance |
| Timeline |
| Amplify ETF Trust |
| AdvisorShares Trust |
Amplify ETF and AdvisorShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and AdvisorShares Trust
The main advantage of trading using opposite Amplify ETF and AdvisorShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, AdvisorShares Trust 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 Trust will offset losses from the drop in AdvisorShares Trust's long position.| Amplify ETF vs. AdvisorShares Trust | Amplify ETF vs. Verano Holdings Corp | Amplify ETF vs. Ascend Wellness Holdings | Amplify ETF vs. Glass House Brands |
| AdvisorShares Trust vs. ProShares Ultra SP500 | AdvisorShares Trust vs. Direxion Daily SP500 | AdvisorShares Trust vs. ProShares Ultra QQQ | AdvisorShares Trust vs. ProShares UltraPro SP500 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |