Correlation Between WisdomTree New and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both WisdomTree New 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 WisdomTree New and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree New Economy and Amplify ETF Trust, you can compare the effects of market volatilities on WisdomTree New 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 WisdomTree New with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree New and Amplify ETF.
Diversification Opportunities for WisdomTree New and Amplify ETF
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Amplify is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree New Economy 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 WisdomTree New 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 WisdomTree New Economy 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 WisdomTree New i.e., WisdomTree New and Amplify ETF go up and down completely randomly.
Pair Corralation between WisdomTree New and Amplify ETF
Given the investment horizon of 90 days WisdomTree New is expected to generate 15.99 times less return on investment than Amplify ETF. But when comparing it to its historical volatility, WisdomTree New Economy is 1.43 times less risky than Amplify ETF. It trades about 0.04 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 4,751 in Amplify ETF Trust on September 3, 2024 and sell it today you would earn a total of 525.00 from holding Amplify ETF Trust or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree New Economy vs. Amplify ETF Trust
Performance |
| Timeline |
| WisdomTree New Economy |
| Amplify ETF Trust |
WisdomTree New and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree New and Amplify ETF
The main advantage of trading using opposite WisdomTree New and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree New 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.| WisdomTree New vs. South Plains Financial | WisdomTree New vs. Red River Bancshares | WisdomTree New vs. NI Holdings | WisdomTree New vs. Western New England |
| Amplify ETF vs. VanEck Israel ETF | Amplify ETF vs. iShares MSCI Israel | Amplify ETF vs. ARK Israel Innovative | Amplify ETF vs. ALPS Disruptive Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |