Correlation Between Amplify ETF and Martin Currie

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

Diversification Opportunities for Amplify ETF and Martin Currie

-0.32

Correlation Coefficient

Amplify ETF  Martin Currie

Very good diversification

The 3 months correlation between Amplify and Martin is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Amplify ETF i.e., Amplify ETF and Martin Currie go up and down completely randomly.

Pair Corralation between Amplify ETF and Martin Currie

Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the Martin Currie. In addition to that, Amplify ETF is 2.02 times more volatile than Martin Currie Sustainable. It trades about -0.18 of its total potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.04 per unit of volatility. If you would invest  1,315  in Martin Currie Sustainable on December 28, 2024 and sell it today you would earn a total of  32.00  from holding Martin Currie Sustainable or generate 2.43% return on investment over 90 days.

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

Amplify ETF Trust  vs.  Martin Currie Sustainable

Amplify ETF Trust

Risk-Adjusted Performance

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 April 2025. The new chaos may also be a sign of medium-term up-swing for the ETF firm stakeholders.

Martin Currie Sustainable

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Sustainable are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Amplify ETF and Martin Currie

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

The idea behind Amplify ETF Trust and Martin Currie Sustainable 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.