Correlation Between PGIM ETF and Amplify
Can any of the company-specific risk be diversified away by investing in both PGIM ETF and Amplify 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 PGIM ETF and Amplify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGIM ETF Trust and Amplify, you can compare the effects of market volatilities on PGIM ETF and Amplify 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 PGIM ETF with a short position of Amplify. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGIM ETF and Amplify.
Diversification Opportunities for PGIM ETF and Amplify
Pay attention - limited upside
The 3 months correlation between PGIM and Amplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PGIM ETF Trust and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify and PGIM 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 PGIM ETF Trust are associated (or correlated) with Amplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify has no effect on the direction of PGIM ETF i.e., PGIM ETF and Amplify go up and down completely randomly.
Pair Corralation between PGIM ETF and Amplify
If you would invest 5,051 in PGIM ETF Trust on September 2, 2024 and sell it today you would earn a total of 48.00 from holding PGIM ETF Trust or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PGIM ETF Trust vs. Amplify
Performance |
| Timeline |
| PGIM ETF Trust |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PGIM ETF and Amplify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGIM ETF and Amplify
The main advantage of trading using opposite PGIM ETF and Amplify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGIM ETF position performs unexpectedly, Amplify 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 will offset losses from the drop in Amplify's long position.The idea behind PGIM ETF Trust and Amplify pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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