Correlation Between Amplify Etho and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Amplify Etho and SPDR SP 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 Etho and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Etho Climate and SPDR SP Emerging, you can compare the effects of market volatilities on Amplify Etho and SPDR SP 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 Etho with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Etho and SPDR SP.
Diversification Opportunities for Amplify Etho and SPDR SP
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and SPDR is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Etho Climate and SPDR SP Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Emerging and Amplify Etho 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 Etho Climate are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Emerging has no effect on the direction of Amplify Etho i.e., Amplify Etho and SPDR SP go up and down completely randomly.
Pair Corralation between Amplify Etho and SPDR SP
Given the investment horizon of 90 days Amplify Etho Climate is expected to generate 1.45 times more return on investment than SPDR SP. However, Amplify Etho is 1.45 times more volatile than SPDR SP Emerging. It trades about 0.14 of its potential returns per unit of risk. SPDR SP Emerging is currently generating about 0.17 per unit of risk. If you would invest 5,729 in Amplify Etho Climate on June 5, 2025 and sell it today you would earn a total of 506.00 from holding Amplify Etho Climate or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Etho Climate vs. SPDR SP Emerging
Performance |
| Timeline |
| Amplify Etho Climate |
| SPDR SP Emerging |
Amplify Etho and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Etho and SPDR SP
The main advantage of trading using opposite Amplify Etho and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Etho position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| Amplify Etho vs. Change Finance Diversified | Amplify Etho vs. iShares MSCI ACWI | Amplify Etho vs. SPDR MSCI Emerging | Amplify Etho vs. SPDR SP 500 |
| SPDR SP vs. SPDR SP Emerging | SPDR SP vs. SPDR SP International | SPDR SP vs. SPDR SP China | SPDR SP vs. SPDR MSCI ACWI |
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 CEOs Directory module to screen CEOs from public companies around the world.
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