Correlation Between Amplify Samsung and Amplify High

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

By analyzing existing cross correlation between Amplify Samsung SOFR and Amplify High Income, you can compare the effects of market volatilities on Amplify Samsung and Amplify High 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 Samsung with a short position of Amplify High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Samsung and Amplify High.

Diversification Opportunities for Amplify Samsung and Amplify High

-0.26

Correlation Coefficient

Amplify Samsung  Amplify High

Very good diversification

The 3 months correlation between Amplify and Amplify is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Samsung SOFR and Amplify High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify High Income and Amplify Samsung 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 Samsung SOFR are associated (or correlated) with Amplify High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify High Income has no effect on the direction of Amplify Samsung i.e., Amplify Samsung and Amplify High go up and down completely randomly.

Pair Corralation between Amplify Samsung and Amplify High

If you would invest  10,061  in Amplify Samsung SOFR on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Amplify Samsung SOFR or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Amplify Samsung SOFR  vs.  Amplify High Income

Amplify Samsung SOFR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify Samsung SOFR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amplify Samsung is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amplify High Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify High Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amplify High is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amplify Samsung and Amplify High

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

The idea behind Amplify Samsung SOFR and Amplify High Income 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.