Correlation Between SPDR SP and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both SPDR SP 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 SPDR SP and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP Oil and Amplify ETF Trust, you can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Amplify ETF.
Diversification Opportunities for SPDR SP and Amplify ETF
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPDR and Amplify is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Oil 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 SPDR SP 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 SPDR SP Oil 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 SPDR SP i.e., SPDR SP and Amplify ETF go up and down completely randomly.
Pair Corralation between SPDR SP and Amplify ETF
Considering the 90-day investment horizon SPDR SP Oil is expected to generate 1.32 times more return on investment than Amplify ETF. However, SPDR SP is 1.32 times more volatile than Amplify ETF Trust. It trades about 0.31 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.4 per unit of risk. If you would invest 13,436 in SPDR SP Oil on August 26, 2024 and sell it today you would earn a total of 1,431 from holding SPDR SP Oil or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP Oil vs. Amplify ETF Trust
Performance |
| Timeline |
| SPDR SP Oil |
| Amplify ETF Trust |
SPDR SP and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Amplify ETF
The main advantage of trading using opposite SPDR SP and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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.| SPDR SP vs. VanEck Oil Services | SPDR SP vs. SPDR SP Metals | SPDR SP vs. Energy Select Sector | SPDR SP vs. SPDR SP Retail |
| Amplify ETF vs. iShares Dividend and | Amplify ETF vs. Martin Currie Sustainable | Amplify ETF vs. VictoryShares THB Mid | Amplify ETF vs. Mast Global Battery |
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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