Correlation Between Amplify ETF and IShares Trust
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares 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 IShares 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 iShares Trust , you can compare the effects of market volatilities on Amplify ETF and IShares 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 IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares Trust.
Diversification Opportunities for Amplify ETF and IShares Trust
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amplify and IShares is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 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 IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares Trust go up and down completely randomly.
Pair Corralation between Amplify ETF and IShares Trust
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 2.72 times more return on investment than IShares Trust. However, Amplify ETF is 2.72 times more volatile than iShares Trust . It trades about 0.06 of its potential returns per unit of risk. iShares Trust is currently generating about 0.01 per unit of risk. If you would invest 2,416 in Amplify ETF Trust on September 12, 2024 and sell it today you would earn a total of 438.00 from holding Amplify ETF Trust or generate 18.13% 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 Trust
Performance |
| Timeline |
| Amplify ETF Trust |
| iShares Trust |
Amplify ETF and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and IShares Trust
The main advantage of trading using opposite Amplify ETF and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, IShares 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 IShares Trust will offset losses from the drop in IShares Trust's long position.| Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Aquagold International |
| IShares Trust vs. iShares Trust | IShares Trust vs. iShares Trust | IShares Trust vs. Simplify Volatility Premium | IShares Trust vs. Tidal Trust II |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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