Correlation Between Amplify ETF and AdvisorShares Vice

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

Diversification Opportunities for Amplify ETF and AdvisorShares Vice

-0.01

Correlation Coefficient

Amplify ETF  AdvisorShares Vice

Good diversification

The 3 months correlation between Amplify and AdvisorShares is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and AdvisorShares Vice ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Vice ETF 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 AdvisorShares Vice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Vice ETF has no effect on the direction of Amplify ETF i.e., Amplify ETF and AdvisorShares Vice go up and down completely randomly.

Pair Corralation between Amplify ETF and AdvisorShares Vice

Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the AdvisorShares Vice. In addition to that, Amplify ETF is 2.32 times more volatile than AdvisorShares Vice ETF. It trades about -0.17 of its total potential returns per unit of risk. AdvisorShares Vice ETF is currently generating about 0.01 per unit of volatility. If you would invest  3,146  in AdvisorShares Vice ETF on December 30, 2024 and sell it today you would earn a total of  7.00  from holding AdvisorShares Vice ETF or generate 0.22% 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.  AdvisorShares Vice ETF

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.

AdvisorShares Vice ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdvisorShares Vice ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, AdvisorShares Vice is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Amplify ETF and AdvisorShares Vice

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

The idea behind Amplify ETF Trust and AdvisorShares Vice ETF 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..