Correlation Between Meet Kevin and Amplify ETF

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

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

Diversification Opportunities for Meet Kevin and Amplify ETF

-0.35

Correlation Coefficient

Meet Kevin  Amplify ETF

Very good diversification

The 3 months correlation between Meet and Amplify is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Meet Kevin and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and Meet Kevin 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 The Meet Kevin are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of Meet Kevin i.e., Meet Kevin and Amplify ETF go up and down completely randomly.

Pair Corralation between Meet Kevin and Amplify ETF

Allowing for the 90-day total investment horizon The Meet Kevin is expected to generate 0.48 times more return on investment than Amplify ETF. However, The Meet Kevin is 2.07 times less risky than Amplify ETF. It trades about 0.03 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.18 per unit of risk. If you would invest  2,575  in The Meet Kevin on December 27, 2024 and sell it today you would earn a total of  35.00  from holding The Meet Kevin or generate 1.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.67%
Values	Daily Returns

The Meet Kevin  vs.  Amplify ETF Trust

Meet Kevin

Risk-Adjusted Performance

Weak

Over the last 90 days The Meet Kevin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Meet Kevin is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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.

Pair Trading with Meet Kevin and Amplify ETF

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

The idea behind The Meet Kevin and Amplify 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.