Correlation Between Martin Currie and Amplify ETF

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

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

Diversification Opportunities for Martin Currie and Amplify ETF

0.81

Correlation Coefficient

Martin Currie  Amplify ETF

Very poor diversification

The 3 months correlation between Martin and Amplify is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable 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 Martin Currie 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 Martin Currie Sustainable 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 Martin Currie i.e., Martin Currie and Amplify ETF go up and down completely randomly.

Pair Corralation between Martin Currie and Amplify ETF

Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 0.37 times more return on investment than Amplify ETF. However, Martin Currie Sustainable is 2.69 times less risky than Amplify ETF. It trades about -0.08 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  1,482  in Martin Currie Sustainable on September 12, 2024 and sell it today you would lose (88.00) from holding Martin Currie Sustainable or give up 5.94% of portfolio value over 90 days.

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

Martin Currie Sustainable  vs.  Amplify ETF Trust

Martin Currie Sustainable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Martin Currie Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 Martin Currie and Amplify ETF

The main advantage of trading using opposite Martin Currie and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie 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 Martin Currie Sustainable 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.