Correlation Between AdvisorShares Pure and Amplify Seymour

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

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

Diversification Opportunities for AdvisorShares Pure and Amplify Seymour

1.0

Correlation Coefficient

AdvisorShares Pure  Amplify Seymour

No risk reduction

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

Pair Corralation between AdvisorShares Pure and Amplify Seymour

Given the investment horizon of 90 days AdvisorShares Pure Cannabis is expected to generate 1.07 times more return on investment than Amplify Seymour. However, AdvisorShares Pure is 1.07 times more volatile than Amplify Seymour Cannabis. It trades about 0.23 of its potential returns per unit of risk. Amplify Seymour Cannabis is currently generating about 0.23 per unit of risk. If you would invest  260.00  in AdvisorShares Pure Cannabis on May 16, 2025 and sell it today you would earn a total of  260.50  from holding AdvisorShares Pure Cannabis or generate 100.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

AdvisorShares Pure Cannabis  vs.  Amplify Seymour Cannabis

AdvisorShares Pure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AdvisorShares Pure Cannabis are ranked lower than 18 (%) 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.

Amplify Seymour Cannabis

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify Seymour Cannabis are ranked lower than 17 (%) 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.

Pair Trading with AdvisorShares Pure and Amplify Seymour

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

The idea behind AdvisorShares Pure Cannabis and Amplify Seymour 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .