Correlation Between Amplify Seymour and AdvisorShares Pure

Can any of the company-specific risk be diversified away by investing in both Amplify Seymour and AdvisorShares Pure 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 Seymour and AdvisorShares Pure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amplify Seymour Cannabis and AdvisorShares Pure Cannabis, you can compare the effects of market volatilities on Amplify Seymour and AdvisorShares Pure 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 Seymour with a short position of AdvisorShares Pure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Seymour and AdvisorShares Pure.

Diversification Opportunities for Amplify Seymour and AdvisorShares Pure

1.0

Correlation Coefficient

Amplify Seymour  AdvisorShares Pure

No risk reduction

The 3 months correlation between Amplify and AdvisorShares is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Seymour Cannabis and AdvisorShares Pure Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvisorShares Pure and Amplify Seymour 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 Seymour Cannabis are associated (or correlated) with AdvisorShares Pure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvisorShares Pure has no effect on the direction of Amplify Seymour i.e., Amplify Seymour and AdvisorShares Pure go up and down completely randomly.

Pair Corralation between Amplify Seymour and AdvisorShares Pure

Given the investment horizon of 90 days Amplify Seymour is expected to generate 1.14 times less return on investment than AdvisorShares Pure. But when comparing it to its historical volatility, Amplify Seymour Cannabis is 1.09 times less risky than AdvisorShares Pure. It trades about 0.17 of its potential returns per unit of risk. AdvisorShares Pure Cannabis is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  280.00  in AdvisorShares Pure Cannabis on May 15, 2025 and sell it today you would earn a total of  184.00  from holding AdvisorShares Pure Cannabis or generate 65.71% return on investment over 90 days.

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

Amplify Seymour Cannabis  vs.  AdvisorShares Pure Cannabis

Amplify Seymour Cannabis

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Seymour Cannabis are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Amplify Seymour unveiled solid returns over the last few months and may actually be approaching a breakup point.

AdvisorShares Pure

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AdvisorShares Pure Cannabis are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, AdvisorShares Pure unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amplify Seymour and AdvisorShares Pure

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

The idea behind Amplify Seymour Cannabis and AdvisorShares Pure Cannabis 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.