Correlation Between Amplify Online and Amplify Digital
Can any of the company-specific risk be diversified away by investing in both Amplify Online and Amplify Digital 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 Online and Amplify Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify Online Retail and Amplify Digital Payments, you can compare the effects of market volatilities on Amplify Online and Amplify Digital 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 Online with a short position of Amplify Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify Online and Amplify Digital.
Diversification Opportunities for Amplify Online and Amplify Digital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and Amplify is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Amplify Online Retail and Amplify Digital Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Digital Payments and Amplify Online 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 Online Retail are associated (or correlated) with Amplify Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Digital Payments has no effect on the direction of Amplify Online i.e., Amplify Online and Amplify Digital go up and down completely randomly.
Pair Corralation between Amplify Online and Amplify Digital
Given the investment horizon of 90 days Amplify Online Retail is expected to generate 0.9 times more return on investment than Amplify Digital. However, Amplify Online Retail is 1.11 times less risky than Amplify Digital. It trades about 0.11 of its potential returns per unit of risk. Amplify Digital Payments is currently generating about 0.08 per unit of risk. If you would invest 6,811 in Amplify Online Retail on June 3, 2025 and sell it today you would earn a total of 525.00 from holding Amplify Online Retail or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify Online Retail vs. Amplify Digital Payments
Performance |
| Timeline |
| Amplify Online Retail |
| Amplify Digital Payments |
Amplify Online and Amplify Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify Online and Amplify Digital
The main advantage of trading using opposite Amplify Online and Amplify Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify Online position performs unexpectedly, Amplify Digital 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 Digital will offset losses from the drop in Amplify Digital's long position.| Amplify Online vs. ProShares Online Retail | Amplify Online vs. WisdomTree Cloud Computing | Amplify Online vs. Amplify Digital Payments | Amplify Online vs. Global X Cloud |
| Amplify Digital vs. iShares Global Clean | Amplify Digital vs. iShares Exponential Technologies | Amplify Digital vs. Invesco Solar ETF | Amplify Digital vs. First Trust NASDAQ |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |