Correlation Between Amplify ETF and PACIFIC

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

Diversification Opportunities for Amplify ETF and PACIFIC

-0.53

Correlation Coefficient

Amplify ETF  PACIFIC

Excellent diversification

The 3 months correlation between Amplify and PACIFIC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Amplify ETF i.e., Amplify ETF and PACIFIC go up and down completely randomly.

Pair Corralation between Amplify ETF and PACIFIC

Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 0.05 times more return on investment than PACIFIC. However, Amplify ETF Trust is 20.35 times less risky than PACIFIC. It trades about 0.15 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about -0.24 per unit of risk. If you would invest  10,004  in Amplify ETF Trust on October 20, 2024 and sell it today you would earn a total of  40.00  from holding Amplify ETF Trust or generate 0.4% return on investment over 90 days.

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

Amplify ETF Trust  vs.  PACIFIC GAS AND

Amplify ETF Trust

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify ETF Trust are ranked lower than 18 (%) 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.

PACIFIC GAS AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PACIFIC GAS AND has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for PACIFIC GAS AND investors.

Pair Trading with Amplify ETF and PACIFIC

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

The idea behind Amplify ETF Trust and PACIFIC GAS AND 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.