Correlation Between Amplify High and Linde Plc

Can any of the company-specific risk be diversified away by investing in both Amplify High and Linde Plc 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 Linde Plc 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 Linde plc Ordinary, you can compare the effects of market volatilities on Amplify High and Linde Plc 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 Linde Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and Linde Plc.

Diversification Opportunities for Amplify High and Linde Plc

0.69

Correlation Coefficient

Amplify High  Linde Plc

Poor diversification

The 3 months correlation between Amplify and Linde is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and Linde plc Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linde plc Ordinary 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 Linde Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linde plc Ordinary has no effect on the direction of Amplify High i.e., Amplify High and Linde Plc go up and down completely randomly.

Pair Corralation between Amplify High and Linde Plc

Considering the 90-day investment horizon Amplify High Income is expected to generate 0.48 times more return on investment than Linde Plc. However, Amplify High Income is 2.06 times less risky than Linde Plc. It trades about 0.24 of its potential returns per unit of risk. Linde plc Ordinary is currently generating about 0.09 per unit of risk. If you would invest  1,112  in Amplify High Income on May 18, 2025 and sell it today you would earn a total of  67.00  from holding Amplify High Income or generate 6.03% return on investment over 90 days.

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

Amplify High Income  vs.  Linde plc Ordinary

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.

Linde plc Ordinary

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Linde plc Ordinary are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Linde Plc is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amplify High and Linde Plc

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

The idea behind Amplify High Income and Linde plc Ordinary 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..