Correlation Between Amplify ETF and SonicShares Global
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and SonicShares Global 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 ETF and SonicShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and SonicShares Global Shipping, you can compare the effects of market volatilities on Amplify ETF and SonicShares Global 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 ETF with a short position of SonicShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and SonicShares Global.
Diversification Opportunities for Amplify ETF and SonicShares Global
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amplify and SonicShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and SonicShares Global Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SonicShares Global and Amplify ETF 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 ETF Trust are associated (or correlated) with SonicShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SonicShares Global has no effect on the direction of Amplify ETF i.e., Amplify ETF and SonicShares Global go up and down completely randomly.
Pair Corralation between Amplify ETF and SonicShares Global
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.89 times more return on investment than SonicShares Global. However, Amplify ETF Trust is 1.12 times less risky than SonicShares Global. It trades about 0.07 of its potential returns per unit of risk. SonicShares Global Shipping is currently generating about -0.09 per unit of risk. If you would invest 1,955 in Amplify ETF Trust on September 26, 2024 and sell it today you would earn a total of 221.00 from holding Amplify ETF Trust or generate 11.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amplify ETF Trust vs. SonicShares Global Shipping
Performance |
Timeline |
Amplify ETF Trust |
SonicShares Global |
Amplify ETF and SonicShares Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amplify ETF and SonicShares Global
The main advantage of trading using opposite Amplify ETF and SonicShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, SonicShares Global 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 SonicShares Global will offset losses from the drop in SonicShares Global's long position.Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Aquagold International |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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