Correlation Between Amplify ETF and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Amplify ETF 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 ETF 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 ETF Trust and SPDR SP Global, you can compare the effects of market volatilities on Amplify ETF 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 ETF with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and SPDR SP.
Diversification Opportunities for Amplify ETF and SPDR SP
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amplify and SPDR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and SPDR SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Global and Amplify ETF 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 ETF Trust 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 Global has no effect on the direction of Amplify ETF i.e., Amplify ETF and SPDR SP go up and down completely randomly.
Pair Corralation between Amplify ETF and SPDR SP
Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the SPDR SP. In addition to that, Amplify ETF is 2.43 times more volatile than SPDR SP Global. It trades about -0.2 of its total potential returns per unit of risk. SPDR SP Global is currently generating about 0.27 per unit of volatility. If you would invest 6,402 in SPDR SP Global on March 14, 2025 and sell it today you would earn a total of 240.00 from holding SPDR SP Global or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. SPDR SP Global
Performance |
| Timeline |
| Amplify ETF Trust |
| SPDR SP Global |
Amplify ETF and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and SPDR SP
The main advantage of trading using opposite Amplify ETF and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF 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 ETF vs. Cronos Group | Amplify ETF vs. AdvisorShares Pure Cannabis | Amplify ETF vs. Canopy Growth Corp | Amplify ETF vs. Curaleaf Holdings |
| SPDR SP vs. iShares Dividend and | SPDR SP vs. Martin Currie Sustainable | SPDR SP vs. AdvisorShares Gerber Kawasaki | SPDR SP vs. Amplify ETF Trust |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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