Correlation Between Renaissance IPO and Amplify Online

Can any of the company-specific risk be diversified away by investing in both Renaissance IPO and Amplify Online 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 Renaissance IPO and Amplify Online into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Renaissance IPO ETF and Amplify Online Retail, you can compare the effects of market volatilities on Renaissance IPO and Amplify Online 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 Renaissance IPO with a short position of Amplify Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance IPO and Amplify Online.

Diversification Opportunities for Renaissance IPO and Amplify Online

0.77

Correlation Coefficient

Renaissance IPO  Amplify Online

Poor diversification

The 3 months correlation between Renaissance and Amplify is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance IPO ETF and Amplify Online Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Online Retail and Renaissance IPO 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 Renaissance IPO ETF are associated (or correlated) with Amplify Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Online Retail has no effect on the direction of Renaissance IPO i.e., Renaissance IPO and Amplify Online go up and down completely randomly.

Pair Corralation between Renaissance IPO and Amplify Online

Considering the 90-day investment horizon Renaissance IPO ETF is expected to generate 1.05 times more return on investment than Amplify Online. However, Renaissance IPO is 1.05 times more volatile than Amplify Online Retail. It trades about 0.07 of its potential returns per unit of risk. Amplify Online Retail is currently generating about 0.05 per unit of risk. If you would invest  2,666  in Renaissance IPO ETF on October 4, 2024 and sell it today you would earn a total of  1,691  from holding Renaissance IPO ETF or generate 63.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Renaissance IPO ETF  vs.  Amplify Online Retail

Renaissance IPO ETF

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Renaissance IPO ETF are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Renaissance IPO is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Amplify Online Retail

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Online Retail are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Amplify Online is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Renaissance IPO and Amplify Online

The main advantage of trading using opposite Renaissance IPO and Amplify Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance IPO position performs unexpectedly, Amplify Online 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 Online will offset losses from the drop in Amplify Online's long position.

The idea behind Renaissance IPO ETF and Amplify Online Retail pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.