Correlation Between AdvisorShares Pure and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Pure 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 AdvisorShares Pure and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Pure Cannabis and Amplify ETF Trust, you can compare the effects of market volatilities on AdvisorShares Pure 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 AdvisorShares Pure with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Pure and Amplify ETF.
Diversification Opportunities for AdvisorShares Pure and Amplify ETF
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AdvisorShares and Amplify is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Pure Cannabis 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 AdvisorShares Pure 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 AdvisorShares Pure Cannabis 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 AdvisorShares Pure i.e., AdvisorShares Pure and Amplify ETF go up and down completely randomly.
Pair Corralation between AdvisorShares Pure and Amplify ETF
Given the investment horizon of 90 days AdvisorShares Pure Cannabis is expected to generate 0.97 times more return on investment than Amplify ETF. However, AdvisorShares Pure Cannabis is 1.03 times less risky than Amplify ETF. It trades about -0.27 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.27 per unit of risk. If you would invest 348.00 in AdvisorShares Pure Cannabis on August 24, 2024 and sell it today you would lose (89.00) from holding AdvisorShares Pure Cannabis or give up 25.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Pure Cannabis vs. Amplify ETF Trust
Performance |
| Timeline |
| AdvisorShares Pure |
| Amplify ETF Trust |
AdvisorShares Pure and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Pure and Amplify ETF
The main advantage of trading using opposite AdvisorShares Pure and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Pure 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.| AdvisorShares Pure vs. iShares Exponential Technologies | AdvisorShares Pure vs. Invesco Solar ETF | AdvisorShares Pure vs. First Trust NASDAQ | AdvisorShares Pure vs. Amplify ETF Trust |
| Amplify ETF vs. Cronos Group | Amplify ETF vs. AdvisorShares Pure Cannabis | Amplify ETF vs. Canopy Growth Corp | Amplify ETF vs. Curaleaf Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |