Correlation Between DBX ETF and Amplify High
Can any of the company-specific risk be diversified away by investing in both DBX ETF and Amplify High 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 DBX ETF and Amplify High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBX ETF Trust and Amplify High Income, you can compare the effects of market volatilities on DBX ETF and Amplify High 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 DBX ETF with a short position of Amplify High. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBX ETF and Amplify High.
Diversification Opportunities for DBX ETF and Amplify High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DBX and Amplify is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding DBX ETF Trust and Amplify High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify High Income and DBX 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 DBX ETF Trust are associated (or correlated) with Amplify High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify High Income has no effect on the direction of DBX ETF i.e., DBX ETF and Amplify High go up and down completely randomly.
Pair Corralation between DBX ETF and Amplify High
Given the investment horizon of 90 days DBX ETF Trust is expected to generate 1.09 times more return on investment than Amplify High. However, DBX ETF is 1.09 times more volatile than Amplify High Income. It trades about 0.35 of its potential returns per unit of risk. Amplify High Income is currently generating about 0.29 per unit of risk. If you would invest 2,708 in DBX ETF Trust on September 1, 2024 and sell it today you would earn a total of 118.00 from holding DBX ETF Trust or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBX ETF Trust vs. Amplify High Income
Performance |
| Timeline |
| DBX ETF Trust |
| Amplify High Income |
DBX ETF and Amplify High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBX ETF and Amplify High
The main advantage of trading using opposite DBX ETF and Amplify High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBX ETF position performs unexpectedly, Amplify High 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 High will offset losses from the drop in Amplify High's long position.| DBX ETF vs. Franklin Templeton ETF | DBX ETF vs. Altrius Global Dividend | DBX ETF vs. Invesco Exchange Traded | DBX ETF vs. Franklin International Core |
| Amplify High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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