Correlation Between EERN and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both EERN 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 EERN and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EERN and Amplify ETF Trust, you can compare the effects of market volatilities on EERN 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 EERN with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EERN and Amplify ETF.
Diversification Opportunities for EERN and Amplify ETF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EERN and Amplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EERN 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 EERN 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 EERN 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 EERN i.e., EERN and Amplify ETF go up and down completely randomly.
Pair Corralation between EERN and Amplify ETF
If you would invest (100.00) in EERN on January 26, 2024 and sell it today you would earn a total of 100.00 from holding EERN or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
EERN vs. Amplify ETF Trust
Performance |
Timeline |
EERN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amplify ETF Trust |
EERN and Amplify ETF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EERN and Amplify ETF
The main advantage of trading using opposite EERN and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EERN 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.EERN vs. Aquagold International | EERN vs. Morningstar Unconstrained Allocation | EERN vs. High Yield Municipal Fund | EERN vs. Thrivent High Yield |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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