Correlation Between Amplify ETF and OCBCSP

Can any of the company-specific risk be diversified away by investing in both Amplify ETF and OCBCSP 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 OCBCSP 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 OCBCSP 1832 10 SEP 30, you can compare the effects of market volatilities on Amplify ETF and OCBCSP 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 OCBCSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and OCBCSP.

Diversification Opportunities for Amplify ETF and OCBCSP

0.0

Correlation Coefficient

Amplify ETF  OCBCSP

Pay attention - limited upside

The 3 months correlation between Amplify and OCBCSP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and OCBCSP 1832 10 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCBCSP 1832 10 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 OCBCSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCBCSP 1832 10 has no effect on the direction of Amplify ETF i.e., Amplify ETF and OCBCSP go up and down completely randomly.

Pair Corralation between Amplify ETF and OCBCSP

Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.03 times more return on investment than OCBCSP. However, Amplify ETF Trust is 30.5 times less risky than OCBCSP. It trades about 0.13 of its potential returns per unit of risk. OCBCSP 1832 10 SEP 30 is currently generating about -0.71 per unit of risk. If you would invest  9,986  in Amplify ETF Trust on October 5, 2024 and sell it today you would earn a total of  36.00  from holding Amplify ETF Trust or generate 0.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	10.0%
Values	Daily Returns

Amplify ETF Trust  vs.  OCBCSP 1832 10 SEP 30

Amplify ETF Trust

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify ETF Trust are ranked lower than 16 (%) 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.

OCBCSP 1832 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OCBCSP 1832 10 SEP 30 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, OCBCSP 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 ETF and OCBCSP

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

The idea behind Amplify ETF Trust and OCBCSP 1832 10 SEP 30 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.