Correlation Between Amplify CWP and FT Vest
Can any of the company-specific risk be diversified away by investing in both Amplify CWP and FT Vest 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 FT Vest 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 FT Vest Dow, you can compare the effects of market volatilities on Amplify CWP and FT Vest 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 FT Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify CWP and FT Vest.
Diversification Opportunities for Amplify CWP and FT Vest
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and FDND is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amplify CWP Enhanced and FT Vest Dow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Vest Dow 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 FT Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Vest Dow has no effect on the direction of Amplify CWP i.e., Amplify CWP and FT Vest go up and down completely randomly.
Pair Corralation between Amplify CWP and FT Vest
Given the investment horizon of 90 days Amplify CWP is expected to generate 1.07 times less return on investment than FT Vest. But when comparing it to its historical volatility, Amplify CWP Enhanced is 2.03 times less risky than FT Vest. It trades about 0.2 of its potential returns per unit of risk. FT Vest Dow is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,281 in FT Vest Dow on June 6, 2025 and sell it today you would earn a total of 142.00 from holding FT Vest Dow or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify CWP Enhanced vs. FT Vest Dow
Performance |
| Timeline |
| Amplify CWP Enhanced |
| FT Vest Dow |
Amplify CWP and FT Vest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify CWP and FT Vest
The main advantage of trading using opposite Amplify CWP and FT Vest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify CWP position performs unexpectedly, FT Vest 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 FT Vest will offset losses from the drop in FT Vest's long position.| Amplify CWP vs. JPMorgan Equity Premium | Amplify CWP vs. JPMorgan Nasdaq Equity | Amplify CWP vs. Global X Russell | Amplify CWP vs. Global X SP |
| FT Vest vs. Strategy Shares | FT Vest vs. Freedom Day Dividend | FT Vest vs. Franklin Templeton ETF | FT Vest 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |