Correlation Between Roundhill Ball and Amplify ETF

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

By analyzing existing cross correlation between Roundhill Ball Metaverse and Amplify ETF Trust, you can compare the effects of market volatilities on Roundhill Ball 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 Roundhill Ball with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roundhill Ball and Amplify ETF.

Diversification Opportunities for Roundhill Ball and Amplify ETF

0.47

Correlation Coefficient

Roundhill Ball  Amplify ETF

Very weak diversification

The 3 months correlation between Roundhill and Amplify is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Roundhill Ball Metaverse 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 Roundhill Ball 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 Roundhill Ball Metaverse 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 Roundhill Ball i.e., Roundhill Ball and Amplify ETF go up and down completely randomly.

Pair Corralation between Roundhill Ball and Amplify ETF

Given the investment horizon of 90 days Roundhill Ball Metaverse is expected to generate 0.49 times more return on investment than Amplify ETF. However, Roundhill Ball Metaverse is 2.06 times less risky than Amplify ETF. It trades about 0.32 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.05 per unit of risk. If you would invest  1,406  in Roundhill Ball Metaverse on May 6, 2025 and sell it today you would earn a total of  397.00  from holding Roundhill Ball Metaverse or generate 28.24% return on investment over 90 days.

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

Roundhill Ball Metaverse  vs.  Amplify ETF Trust

Roundhill Ball Metaverse

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Roundhill Ball Metaverse are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Roundhill Ball showed solid returns over the last few months and may actually be approaching a breakup point.

Amplify ETF Trust

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify ETF Trust are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating forward-looking indicators, Amplify ETF may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Roundhill Ball and Amplify ETF

The main advantage of trading using opposite Roundhill Ball and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roundhill Ball 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.

The idea behind Roundhill Ball Metaverse and Amplify ETF Trust 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .