Correlation Between Amplify High and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Amplify High and Exchange Traded 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 Exchange Traded 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 Exchange Traded Concepts, you can compare the effects of market volatilities on Amplify High and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Exchange Traded.
Diversification Opportunities for Amplify High and Exchange Traded
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and Exchange is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Amplify High i.e., Amplify High and Exchange Traded go up and down completely randomly.
Pair Corralation between Amplify High and Exchange Traded
If you would invest 1,185 in Amplify High Income on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Amplify High Income or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Amplify High Income vs. Exchange Traded Concepts
Performance |
| Timeline |
| Amplify High Income |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amplify High and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and Exchange Traded
The main advantage of trading using opposite Amplify High and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded'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 |
| Exchange Traded vs. Cabana Target Drawdown | Exchange Traded vs. ETC 6 Meridian | Exchange Traded vs. Timothy Plan 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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