Correlation Between Amplify High and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Amplify High and IShares ESG 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 ESG 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 ESG Aware, you can compare the effects of market volatilities on Amplify High and IShares ESG 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 ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and IShares ESG.
Diversification Opportunities for Amplify High and IShares ESG
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and IShares is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Amplify High i.e., Amplify High and IShares ESG go up and down completely randomly.
Pair Corralation between Amplify High and IShares ESG
Considering the 90-day investment horizon Amplify High Income is expected to generate 1.48 times more return on investment than IShares ESG. However, Amplify High is 1.48 times more volatile than iShares ESG Aware. It trades about 0.13 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.14 per unit of risk. If you would invest 1,123 in Amplify High Income on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Amplify High Income or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. iShares ESG Aware
Performance |
| Timeline |
| Amplify High Income |
| iShares ESG Aware |
Amplify High and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and IShares ESG
The main advantage of trading using opposite Amplify High and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG'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 ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Aware | IShares ESG vs. iShares ESG Advanced |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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