Correlation Between Amplify High and Arrow Investment

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

By analyzing existing cross correlation between Amplify High Income and Arrow Investment Advisors, you can compare the effects of market volatilities on Amplify High and Arrow Investment 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 High with a short position of Arrow Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Arrow Investment.

Diversification Opportunities for Amplify High and Arrow Investment

0.75

Correlation Coefficient

Amplify High  Arrow Investment

Poor diversification

The 3 months correlation between Amplify and Arrow is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and Arrow Investment Advisors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Investment Advisors and Amplify High 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 High Income are associated (or correlated) with Arrow Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Investment Advisors has no effect on the direction of Amplify High i.e., Amplify High and Arrow Investment go up and down completely randomly.

Pair Corralation between Amplify High and Arrow Investment

If you would invest  1,139  in Amplify High Income on July 5, 2025 and sell it today you would earn a total of  46.00  from holding Amplify High Income or generate 4.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Amplify High Income  vs.  Arrow Investment Advisors

Amplify High Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify High Income are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Amplify High is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Arrow Investment Advisors

Risk-Adjusted Performance

Weakest

Over the last 90 days Arrow Investment Advisors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Arrow Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Amplify High and Arrow Investment

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

The idea behind Amplify High Income and Arrow Investment Advisors 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.