Correlation Between Amplify High and Discipline Fund
Can any of the company-specific risk be diversified away by investing in both Amplify High and Discipline Fund 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 Discipline Fund 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 Discipline Fund ETF, you can compare the effects of market volatilities on Amplify High and Discipline Fund 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 Discipline Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Discipline Fund.
Diversification Opportunities for Amplify High and Discipline Fund
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and Discipline is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and Discipline Fund ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discipline Fund ETF 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 Discipline Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discipline Fund ETF has no effect on the direction of Amplify High i.e., Amplify High and Discipline Fund go up and down completely randomly.
Pair Corralation between Amplify High and Discipline Fund
Considering the 90-day investment horizon Amplify High Income is expected to generate 1.5 times more return on investment than Discipline Fund. However, Amplify High is 1.5 times more volatile than Discipline Fund ETF. It trades about 0.06 of its potential returns per unit of risk. Discipline Fund ETF is currently generating about 0.06 per unit of risk. If you would invest 1,003 in Amplify High Income on November 2, 2024 and sell it today you would earn a total of 185.00 from holding Amplify High Income or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. Discipline Fund ETF
Performance |
| Timeline |
| Amplify High Income |
| Discipline Fund ETF |
Amplify High and Discipline Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and Discipline Fund
The main advantage of trading using opposite Amplify High and Discipline Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High position performs unexpectedly, Discipline Fund 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 Discipline Fund will offset losses from the drop in Discipline Fund'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 |
| Discipline Fund vs. ATAC Rotation ETF | Discipline Fund vs. Amplify BlackSwan ISWN | Discipline Fund vs. Tidal ETF Trust | Discipline Fund vs. Aptus Defined Risk |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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