Correlation Between SPDR Portfolio and Amplify Cash

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

By analyzing existing cross correlation between SPDR Portfolio SP and Amplify Cash Flow, you can compare the effects of market volatilities on SPDR Portfolio and Amplify Cash 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 SPDR Portfolio with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Portfolio and Amplify Cash.

Diversification Opportunities for SPDR Portfolio and Amplify Cash

0.0

Correlation Coefficient

SPDR Portfolio  Amplify Cash

Pay attention - limited upside

The 3 months correlation between SPDR and Amplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Portfolio SP and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and SPDR Portfolio 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 SPDR Portfolio SP are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of SPDR Portfolio i.e., SPDR Portfolio and Amplify Cash go up and down completely randomly.

Pair Corralation between SPDR Portfolio and Amplify Cash

If you would invest  5,229  in SPDR Portfolio SP on August 30, 2024 and sell it today you would earn a total of  283.00  from holding SPDR Portfolio SP or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

SPDR Portfolio SP  vs.  Amplify Cash Flow

SPDR Portfolio SP

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Portfolio SP are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, SPDR Portfolio is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Amplify Cash Flow

Risk-Adjusted Performance

0 of 100

OK

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

Pair Trading with SPDR Portfolio and Amplify Cash

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

The idea behind SPDR Portfolio SP and Amplify Cash Flow 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.

Check out your portfolio center.

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 Transaction History module to view history of all your transactions and understand their impact on performance.