Correlation Between Amplify High and IShares Core
Can any of the company-specific risk be diversified away by investing in both Amplify High and IShares Core 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 High and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify High Income and iShares Core Moderate, you can compare the effects of market volatilities on Amplify High and IShares Core 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 High with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and IShares Core.
Diversification Opportunities for Amplify High and IShares Core
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and IShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and iShares Core Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core Moderate and Amplify High 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 High Income are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core Moderate has no effect on the direction of Amplify High i.e., Amplify High and IShares Core go up and down completely randomly.
Pair Corralation between Amplify High and IShares Core
Considering the 90-day investment horizon Amplify High is expected to generate 1.1 times less return on investment than IShares Core. In addition to that, Amplify High is 1.39 times more volatile than iShares Core Moderate. It trades about 0.06 of its total potential returns per unit of risk. iShares Core Moderate is currently generating about 0.09 per unit of volatility. If you would invest 4,421 in iShares Core Moderate on August 29, 2024 and sell it today you would earn a total of 33.00 from holding iShares Core Moderate or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. iShares Core Moderate
Performance |
| Timeline |
| Amplify High Income |
| iShares Core Moderate |
Amplify High and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and IShares Core
The main advantage of trading using opposite Amplify High and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Amplify High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow ETF Trust |
| IShares Core vs. NEOS ETF Trust | IShares Core vs. First Trust Multi Asset | IShares Core vs. Amplify High Income | IShares Core vs. Global X Russell |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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