Correlation Between Amplify Thematic and Bondbloxx ETF

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

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

Diversification Opportunities for Amplify Thematic and Bondbloxx ETF

-0.31

Correlation Coefficient

Amplify Thematic  Bondbloxx ETF

Very good diversification

The 3 months correlation between Amplify and Bondbloxx is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Thematic All Stars and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust and Amplify Thematic 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 Thematic All Stars are associated (or correlated) with Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Amplify Thematic i.e., Amplify Thematic and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Amplify Thematic and Bondbloxx ETF

Given the investment horizon of 90 days Amplify Thematic All Stars is expected to generate 14.84 times more return on investment than Bondbloxx ETF. However, Amplify Thematic is 14.84 times more volatile than Bondbloxx ETF Trust. It trades about 0.23 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.01 per unit of risk. If you would invest  2,243  in Amplify Thematic All Stars on September 16, 2024 and sell it today you would earn a total of  302.00  from holding Amplify Thematic All Stars or generate 13.46% return on investment over 90 days.

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

Amplify Thematic All Stars  vs.  Bondbloxx ETF Trust

Amplify Thematic All

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Thematic All Stars are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Amplify Thematic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bondbloxx ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bondbloxx ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Bondbloxx ETF is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amplify Thematic and Bondbloxx ETF

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

The idea behind Amplify Thematic All Stars and Bondbloxx ETF Trust 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.