Correlation Between Amplify Samsung and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Amplify Samsung 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 Amplify Samsung and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Samsung SOFR and Amplify ETF Trust, you can compare the effects of market volatilities on Amplify Samsung 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 Amplify Samsung with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Samsung and Amplify ETF.
Diversification Opportunities for Amplify Samsung and Amplify ETF
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Amplify is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Samsung SOFR 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 Amplify Samsung 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 Samsung SOFR 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 Amplify Samsung i.e., Amplify Samsung and Amplify ETF go up and down completely randomly.
Pair Corralation between Amplify Samsung and Amplify ETF
Considering the 90-day investment horizon Amplify Samsung is expected to generate 5.09 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, Amplify Samsung SOFR is 55.33 times less risky than Amplify ETF. It trades about 0.84 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,510 in Amplify ETF Trust on August 27, 2024 and sell it today you would earn a total of 1,419 from holding Amplify ETF Trust or generate 40.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 62.36% |
| Values | Daily Returns |
Amplify Samsung SOFR vs. Amplify ETF Trust
Performance |
| Timeline |
| Amplify Samsung SOFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Market Crasher
| Amplify ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Amplify Samsung and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Samsung and Amplify ETF
The main advantage of trading using opposite Amplify Samsung and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Samsung 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.The idea behind Amplify Samsung SOFR and Amplify ETF Trust 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.| Amplify ETF vs. WisdomTree Cloud Computing | Amplify ETF vs. Global X Cloud | Amplify ETF vs. TrueShares Technology AI | Amplify ETF vs. Innovator Loup Frontier |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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