Correlation Between Amplify ETF and Mast Global

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

Diversification Opportunities for Amplify ETF and Mast Global

-0.05

Correlation Coefficient

Amplify ETF  Mast Global

Good diversification

The 3 months correlation between Amplify and Mast is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Mast Global Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mast Global Battery 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 Mast Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mast Global Battery has no effect on the direction of Amplify ETF i.e., Amplify ETF and Mast Global go up and down completely randomly.

Pair Corralation between Amplify ETF and Mast Global

Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the Mast Global. In addition to that, Amplify ETF is 3.13 times more volatile than Mast Global Battery. It trades about -0.23 of its total potential returns per unit of risk. Mast Global Battery is currently generating about -0.02 per unit of volatility. If you would invest  2,553  in Mast Global Battery on September 4, 2024 and sell it today you would lose (24.00) from holding Mast Global Battery or give up 0.94% of portfolio value over 90 days.

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

Amplify ETF Trust  vs.  Mast Global Battery

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 unfluctuating 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.

Mast Global Battery

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mast Global Battery are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Mast Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Amplify ETF and Mast Global

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

The idea behind Amplify ETF Trust and Mast Global Battery 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .