Correlation Between First Trust and Amplify Cybersecurity
Can any of the company-specific risk be diversified away by investing in both First Trust and Amplify Cybersecurity 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 First Trust and Amplify Cybersecurity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Dow and Amplify Cybersecurity ETF, you can compare the effects of market volatilities on First Trust and Amplify Cybersecurity 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 First Trust with a short position of Amplify Cybersecurity. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Amplify Cybersecurity.
Diversification Opportunities for First Trust and Amplify Cybersecurity
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Amplify is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Dow and Amplify Cybersecurity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cybersecurity ETF and First Trust 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 First Trust Dow are associated (or correlated) with Amplify Cybersecurity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cybersecurity ETF has no effect on the direction of First Trust i.e., First Trust and Amplify Cybersecurity go up and down completely randomly.
Pair Corralation between First Trust and Amplify Cybersecurity
Considering the 90-day investment horizon First Trust Dow is expected to under-perform the Amplify Cybersecurity. In addition to that, First Trust is 1.01 times more volatile than Amplify Cybersecurity ETF. It trades about -0.02 of its total potential returns per unit of risk. Amplify Cybersecurity ETF is currently generating about -0.02 per unit of volatility. If you would invest 8,777 in Amplify Cybersecurity ETF on August 14, 2025 and sell it today you would lose (62.00) from holding Amplify Cybersecurity ETF or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Dow vs. Amplify Cybersecurity ETF
Performance |
| Timeline |
| First Trust Dow |
| Amplify Cybersecurity ETF |
First Trust and Amplify Cybersecurity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Amplify Cybersecurity
The main advantage of trading using opposite First Trust and Amplify Cybersecurity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Amplify Cybersecurity 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 Cybersecurity will offset losses from the drop in Amplify Cybersecurity's long position.| First Trust vs. KraneShares CSI China | First Trust vs. Invesco SP 500 | First Trust vs. Capital Group Core | First Trust vs. The Real Estate |
| Amplify Cybersecurity vs. iShares Paris Aligned Climate | Amplify Cybersecurity vs. Amplify Junior Silver | Amplify Cybersecurity vs. Main Sector Rotation | Amplify Cybersecurity vs. SPDR SP 500 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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