Correlation Between Amplify CWP and Kurv Yield

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

By analyzing existing cross correlation between Amplify CWP Enhanced and Kurv Yield Premium, you can compare the effects of market volatilities on Amplify CWP and Kurv Yield 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 CWP with a short position of Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and Kurv Yield.

Diversification Opportunities for Amplify CWP and Kurv Yield

0.5

Correlation Coefficient

Amplify CWP  Kurv Yield

Very weak diversification

The 3 months correlation between Amplify and Kurv is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and Kurv Yield Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Premium and Amplify CWP 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 CWP Enhanced are associated (or correlated) with Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Premium has no effect on the direction of Amplify CWP i.e., Amplify CWP and Kurv Yield go up and down completely randomly.

Pair Corralation between Amplify CWP and Kurv Yield

Given the investment horizon of 90 days Amplify CWP Enhanced is expected to generate 0.53 times more return on investment than Kurv Yield. However, Amplify CWP Enhanced is 1.87 times less risky than Kurv Yield. It trades about 0.15 of its potential returns per unit of risk. Kurv Yield Premium is currently generating about 0.04 per unit of risk. If you would invest  4,018  in Amplify CWP Enhanced on August 30, 2024 and sell it today you would earn a total of  247.00  from holding Amplify CWP Enhanced or generate 6.15% return on investment over 90 days.

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

Amplify CWP Enhanced  vs.  Kurv Yield Premium

Amplify CWP Enhanced

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify CWP Enhanced are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Amplify CWP is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Kurv Yield Premium

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Yield Premium are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Kurv Yield is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amplify CWP and Kurv Yield

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

The idea behind Amplify CWP Enhanced and Kurv Yield Premium 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.