Correlation Between Amplify ETF and Unusual Whales

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

Diversification Opportunities for Amplify ETF and Unusual Whales

0.57

Correlation Coefficient

Amplify ETF  Unusual Whales

Very weak diversification

The 3 months correlation between Amplify and Unusual is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and Unusual Whales Subversive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unusual Whales Subversive 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 Unusual Whales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unusual Whales Subversive has no effect on the direction of Amplify ETF i.e., Amplify ETF and Unusual Whales go up and down completely randomly.

Pair Corralation between Amplify ETF and Unusual Whales

Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.12 times more return on investment than Unusual Whales. However, Amplify ETF Trust is 8.18 times less risky than Unusual Whales. It trades about 0.17 of its potential returns per unit of risk. Unusual Whales Subversive is currently generating about -0.19 per unit of risk. If you would invest  9,991  in Amplify ETF Trust on October 14, 2024 and sell it today you would earn a total of  44.00  from holding Amplify ETF Trust or generate 0.44% return on investment over 90 days.

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

Amplify ETF Trust  vs.  Unusual Whales Subversive

Amplify ETF Trust

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify ETF Trust are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Amplify ETF is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Unusual Whales Subversive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unusual Whales Subversive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Unusual Whales 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 Unusual Whales

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

The idea behind Amplify ETF Trust and Unusual Whales Subversive 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..