Correlation Between Thrivent High and Amplify ETF

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

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

Diversification Opportunities for Thrivent High and Amplify ETF

-0.66

Correlation Coefficient

Thrivent High  Amplify ETF

Excellent diversification

The 3 months correlation between Thrivent and Amplify is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and Amplify ETF go up and down completely randomly.

Pair Corralation between Thrivent High and Amplify ETF

Assuming the 90 days horizon Thrivent High Yield is expected to generate 0.05 times more return on investment than Amplify ETF. However, Thrivent High Yield is 21.09 times less risky than Amplify ETF. It trades about 0.15 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.11 per unit of risk. If you would invest  421.00  in Thrivent High Yield on September 12, 2024 and sell it today you would earn a total of  6.00  from holding Thrivent High Yield or generate 1.43% return on investment over 90 days.

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

Thrivent High Yield  vs.  Amplify ETF Trust

Thrivent High Yield

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Thrivent High Yield are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Thrivent High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 January 2025. The new chaos may also be a sign of medium-term up-swing for the ETF firm stakeholders.

Pair Trading with Thrivent High and Amplify ETF

The main advantage of trading using opposite Thrivent High and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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 Thrivent High Yield 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.