Correlation Between Amplify CWP and IShares Russell

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and IShares Russell 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 CWP and IShares Russell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify CWP Enhanced and IShares Russell 1000, you can compare the effects of market volatilities on Amplify CWP and IShares Russell 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 CWP with a short position of IShares Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and IShares Russell.

Diversification Opportunities for Amplify CWP and IShares Russell

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Amplify and IShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and IShares Russell 1000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares Russell 1000 and Amplify CWP 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 CWP Enhanced are associated (or correlated) with IShares Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares Russell 1000 has no effect on the direction of Amplify CWP i.e., Amplify CWP and IShares Russell go up and down completely randomly.

Pair Corralation between Amplify CWP and IShares Russell

Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 0.48 times more return on investment than IShares Russell. However, Amplify CWP Enhanced is 2.07 times less risky than IShares Russell. It trades about 0.36 of its potential returns per unit of risk. IShares Russell 1000 is currently generating about 0.13 per unit of risk. If you would invest  3,758  in Amplify CWP Enhanced on December 29, 2023 and sell it today you would earn a total of  130.00  from holding Amplify CWP Enhanced or generate 3.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.65%
ValuesDaily Returns

Amplify CWP Enhanced  vs.  IShares Russell 1000

 Performance 
       Timeline  
Amplify CWP Enhanced 

Risk-Adjusted Performance

20 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Amplify CWP Enhanced are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Amplify CWP may actually be approaching a critical reversion point that can send shares even higher in April 2024.
IShares Russell 1000 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in IShares Russell 1000 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, IShares Russell may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Amplify CWP and IShares Russell Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amplify CWP and IShares Russell

The main advantage of trading using opposite Amplify CWP and IShares Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, IShares Russell 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 IShares Russell will offset losses from the drop in IShares Russell's long position.
The idea behind Amplify CWP Enhanced and IShares Russell 1000 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Transaction History
View history of all your transactions and understand their impact on performance
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
CEOs Directory
Screen CEOs from public companies around the world
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Content Syndication
Quickly integrate customizable finance content to your own investment portal