Correlation Between Amplify High and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Amplify High 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 Amplify High and Amplify ETF 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 Amplify ETF Trust, you can compare the effects of market volatilities on Amplify High 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 Amplify High with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Amplify ETF.
Diversification Opportunities for Amplify High and Amplify ETF
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Amplify is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income 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 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 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 Amplify High i.e., Amplify High and Amplify ETF go up and down completely randomly.
Pair Corralation between Amplify High and Amplify ETF
Considering the 90-day investment horizon Amplify High Income is expected to generate 0.51 times more return on investment than Amplify ETF. However, Amplify High Income is 1.95 times less risky than Amplify ETF. It trades about 0.05 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.03 per unit of risk. If you would invest 1,210 in Amplify High Income on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Amplify High Income or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. Amplify ETF Trust
Performance |
| Timeline |
| Amplify High Income |
| Amplify ETF Trust |
Amplify High and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and Amplify ETF
The main advantage of trading using opposite Amplify High and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High 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.| Amplify High vs. FT Cboe Vest | Amplify High vs. First Trust Exchange Traded | Amplify High vs. FT Cboe Vest | Amplify High vs. Anfield Equity Sector |
| Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Aquagold International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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