Correlation Between AdvisorShares Hotel and Amplify Weight
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Hotel and Amplify Weight 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 AdvisorShares Hotel and Amplify Weight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Hotel ETF and Amplify Weight Loss, you can compare the effects of market volatilities on AdvisorShares Hotel and Amplify Weight 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 AdvisorShares Hotel with a short position of Amplify Weight. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Hotel and Amplify Weight.
Diversification Opportunities for AdvisorShares Hotel and Amplify Weight
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AdvisorShares and Amplify is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Hotel ETF and Amplify Weight Loss in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Weight Loss and AdvisorShares Hotel 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 AdvisorShares Hotel ETF are associated (or correlated) with Amplify Weight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Weight Loss has no effect on the direction of AdvisorShares Hotel i.e., AdvisorShares Hotel and Amplify Weight go up and down completely randomly.
Pair Corralation between AdvisorShares Hotel and Amplify Weight
Given the investment horizon of 90 days AdvisorShares Hotel ETF is expected to under-perform the Amplify Weight. In addition to that, AdvisorShares Hotel is 1.07 times more volatile than Amplify Weight Loss. It trades about -0.05 of its total potential returns per unit of risk. Amplify Weight Loss is currently generating about 0.16 per unit of volatility. If you would invest 2,313 in Amplify Weight Loss on September 1, 2025 and sell it today you would earn a total of 288.00 from holding Amplify Weight Loss or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Hotel ETF vs. Amplify Weight Loss
Performance |
| Timeline |
| AdvisorShares Hotel ETF |
| Amplify Weight Loss |
AdvisorShares Hotel and Amplify Weight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Hotel and Amplify Weight
The main advantage of trading using opposite AdvisorShares Hotel and Amplify Weight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Hotel position performs unexpectedly, Amplify Weight 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 Weight will offset losses from the drop in Amplify Weight's long position.| AdvisorShares Hotel vs. Strategy Shares | AdvisorShares Hotel vs. Freedom Day Dividend | AdvisorShares Hotel vs. Franklin Templeton ETF | AdvisorShares Hotel vs. iShares MSCI China |
| Amplify Weight vs. Strategy Shares | Amplify Weight vs. Freedom Day Dividend | Amplify Weight vs. Franklin Templeton ETF | Amplify Weight vs. iShares MSCI China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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