Correlation Between IShares Exponential and Amplify ETF

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

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

Diversification Opportunities for IShares Exponential and Amplify ETF

-0.21

Correlation Coefficient

IShares Exponential  Amplify ETF

Very good diversification

The 3 months correlation between IShares and Amplify is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding iShares Exponential Technologi 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 IShares Exponential 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 iShares Exponential Technologies 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 IShares Exponential i.e., IShares Exponential and Amplify ETF go up and down completely randomly.

Pair Corralation between IShares Exponential and Amplify ETF

Allowing for the 90-day total investment horizon iShares Exponential Technologies is expected to generate 0.35 times more return on investment than Amplify ETF. However, iShares Exponential Technologies is 2.89 times less risky than Amplify ETF. It trades about 0.04 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.03 per unit of risk. If you would invest  4,994  in iShares Exponential Technologies on August 26, 2024 and sell it today you would earn a total of  1,088  from holding iShares Exponential Technologies or generate 21.79% return on investment over 90 days.

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

iShares Exponential Technologi  vs.  Amplify ETF Trust

iShares Exponential

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Exponential Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, IShares Exponential is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Amplify ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amplify ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Etf's forward-looking indicators remain relatively steady which may send shares a bit higher in December 2024. The new chaos may also be a sign of medium-term up-swing for the ETF firm stakeholders.

Pair Trading with IShares Exponential and Amplify ETF

The main advantage of trading using opposite IShares Exponential and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Exponential 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 iShares Exponential Technologies 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.