Correlation Between Amplify High and InfraCap MLP
Can any of the company-specific risk be diversified away by investing in both Amplify High and InfraCap MLP 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 High and InfraCap MLP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify High Income and InfraCap MLP ETF, you can compare the effects of market volatilities on Amplify High and InfraCap MLP 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 High with a short position of InfraCap MLP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify High and InfraCap MLP.
Diversification Opportunities for Amplify High and InfraCap MLP
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amplify and InfraCap is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amplify High Income and InfraCap MLP ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfraCap MLP ETF and Amplify High 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 High Income are associated (or correlated) with InfraCap MLP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfraCap MLP ETF has no effect on the direction of Amplify High i.e., Amplify High and InfraCap MLP go up and down completely randomly.
Pair Corralation between Amplify High and InfraCap MLP
Considering the 90-day investment horizon Amplify High Income is expected to generate 0.33 times more return on investment than InfraCap MLP. However, Amplify High Income is 3.0 times less risky than InfraCap MLP. It trades about 0.3 of its potential returns per unit of risk. InfraCap MLP ETF is currently generating about 0.01 per unit of risk. If you would invest 1,084 in Amplify High Income on April 26, 2025 and sell it today you would earn a total of 93.00 from holding Amplify High Income or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify High Income vs. InfraCap MLP ETF
Performance |
| Timeline |
| Amplify High Income |
| InfraCap MLP ETF |
Amplify High and InfraCap MLP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify High and InfraCap MLP
The main advantage of trading using opposite Amplify High and InfraCap MLP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify High position performs unexpectedly, InfraCap MLP 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 InfraCap MLP will offset losses from the drop in InfraCap MLP's long position.| Amplify High vs. Invesco KBW High | Amplify High vs. Invesco CEF Income | Amplify High vs. Global X SuperDividend | Amplify High vs. Arrow ETF Trust |
| InfraCap MLP vs. Virtus InfraCap Preferred | InfraCap MLP vs. Global X MLP | InfraCap MLP vs. Amplify High Income | InfraCap MLP vs. Alerian MLP ETF |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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