Correlation Between Amplify ETF and IShares Dividend

Can any of the company-specific risk be diversified away by investing in both Amplify ETF and IShares Dividend 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 IShares Dividend 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 iShares Dividend and, you can compare the effects of market volatilities on Amplify ETF and IShares Dividend 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 IShares Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and IShares Dividend.

Diversification Opportunities for Amplify ETF and IShares Dividend

-0.75

Correlation Coefficient

Amplify ETF  IShares Dividend

Pay attention - limited upside

The 3 months correlation between Amplify and IShares is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and iShares Dividend and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Dividend 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 IShares Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Dividend has no effect on the direction of Amplify ETF i.e., Amplify ETF and IShares Dividend go up and down completely randomly.

Pair Corralation between Amplify ETF and IShares Dividend

Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the IShares Dividend. In addition to that, Amplify ETF is 4.76 times more volatile than iShares Dividend and. It trades about -0.11 of its total potential returns per unit of risk. iShares Dividend and is currently generating about 0.15 per unit of volatility. If you would invest  4,670  in iShares Dividend and on September 12, 2024 and sell it today you would earn a total of  288.00  from holding iShares Dividend and or generate 6.17% 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.  iShares Dividend and

Amplify ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Etf's forward-looking indicators remain relatively steady which may send shares a bit higher in January 2025. The new chaos may also be a sign of medium-term up-swing for the ETF firm stakeholders.

iShares Dividend

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Dividend and are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, IShares Dividend is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amplify ETF and IShares Dividend

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

The idea behind Amplify ETF Trust and iShares Dividend and 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.