Correlation Between AdvisorShares Pure and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Pure 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 AdvisorShares Pure and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Pure Cannabis and Amplify ETF Trust, you can compare the effects of market volatilities on AdvisorShares Pure 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 AdvisorShares Pure with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Pure and Amplify ETF.
Diversification Opportunities for AdvisorShares Pure and Amplify ETF
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AdvisorShares and Amplify is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Pure Cannabis 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 AdvisorShares Pure 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 AdvisorShares Pure Cannabis 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 AdvisorShares Pure i.e., AdvisorShares Pure and Amplify ETF go up and down completely randomly.
Pair Corralation between AdvisorShares Pure and Amplify ETF
Given the investment horizon of 90 days AdvisorShares Pure Cannabis is expected to under-perform the Amplify ETF. In addition to that, AdvisorShares Pure is 3.61 times more volatile than Amplify ETF Trust. It trades about -0.02 of its total potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.06 per unit of volatility. If you would invest 4,156 in Amplify ETF Trust on August 23, 2024 and sell it today you would earn a total of 1,809 from holding Amplify ETF Trust or generate 43.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Pure Cannabis vs. Amplify ETF Trust
Performance |
| Timeline |
| AdvisorShares Pure |
| Amplify ETF Trust |
AdvisorShares Pure and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Pure and Amplify ETF
The main advantage of trading using opposite AdvisorShares Pure and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Pure 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.| AdvisorShares Pure vs. AdvisorShares Pure Cannabis | AdvisorShares Pure vs. Trulieve Cannabis Corp | AdvisorShares Pure vs. Green Thumb Industries | AdvisorShares Pure vs. Amplify Seymour Cannabis |
| Amplify ETF vs. Global X FinTech | Amplify ETF vs. Amplify Online Retail | Amplify ETF vs. First Trust Cloud | Amplify ETF vs. Amplify ETF Trust |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |