Correlation Between Amplify Thematic and Inspire Tactical
Can any of the company-specific risk be diversified away by investing in both Amplify Thematic and Inspire Tactical 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 Thematic and Inspire Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Thematic All Stars and Inspire Tactical Balanced, you can compare the effects of market volatilities on Amplify Thematic and Inspire Tactical 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 Thematic with a short position of Inspire Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Thematic and Inspire Tactical.
Diversification Opportunities for Amplify Thematic and Inspire Tactical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and Inspire is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Thematic All Stars and Inspire Tactical Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire Tactical Balanced and Amplify Thematic 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 Thematic All Stars are associated (or correlated) with Inspire Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire Tactical Balanced has no effect on the direction of Amplify Thematic i.e., Amplify Thematic and Inspire Tactical go up and down completely randomly.
Pair Corralation between Amplify Thematic and Inspire Tactical
Given the investment horizon of 90 days Amplify Thematic All Stars is expected to generate 1.4 times more return on investment than Inspire Tactical. However, Amplify Thematic is 1.4 times more volatile than Inspire Tactical Balanced. It trades about 0.4 of its potential returns per unit of risk. Inspire Tactical Balanced is currently generating about 0.3 per unit of risk. If you would invest 2,194 in Amplify Thematic All Stars on September 1, 2024 and sell it today you would earn a total of 237.00 from holding Amplify Thematic All Stars or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Thematic All Stars vs. Inspire Tactical Balanced
Performance |
| Timeline |
| Amplify Thematic All |
| Inspire Tactical Balanced |
Amplify Thematic and Inspire Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Thematic and Inspire Tactical
The main advantage of trading using opposite Amplify Thematic and Inspire Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Thematic position performs unexpectedly, Inspire Tactical 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 Inspire Tactical will offset losses from the drop in Inspire Tactical's long position.| Amplify Thematic vs. Amplify BlackSwan ISWN | Amplify Thematic vs. Global X Thematic | Amplify Thematic vs. Virtus ETF Trust |
| Inspire Tactical vs. Strategy Shares NewfoundReSolve | Inspire Tactical vs. iShares ESG Aware | Inspire Tactical vs. Eaton Vance Enhanced | Inspire Tactical vs. Grayscale Ethereum Mini |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |