Correlation Between Volatility Shares and Amplify Bloomberg
Can any of the company-specific risk be diversified away by investing in both Volatility Shares and Amplify Bloomberg 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 Volatility Shares and Amplify Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volatility Shares Trust and Amplify Bloomberg Treasury, you can compare the effects of market volatilities on Volatility Shares and Amplify Bloomberg 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 Volatility Shares with a short position of Amplify Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volatility Shares and Amplify Bloomberg.
Diversification Opportunities for Volatility Shares and Amplify Bloomberg
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Volatility and Amplify is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Volatility Shares Trust and Amplify Bloomberg Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Bloomberg and Volatility Shares 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 Volatility Shares Trust are associated (or correlated) with Amplify Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Bloomberg has no effect on the direction of Volatility Shares i.e., Volatility Shares and Amplify Bloomberg go up and down completely randomly.
Pair Corralation between Volatility Shares and Amplify Bloomberg
Given the investment horizon of 90 days Volatility Shares Trust is expected to generate 7.02 times more return on investment than Amplify Bloomberg. However, Volatility Shares is 7.02 times more volatile than Amplify Bloomberg Treasury. It trades about 0.1 of its potential returns per unit of risk. Amplify Bloomberg Treasury is currently generating about 0.03 per unit of risk. If you would invest 1,346 in Volatility Shares Trust on September 3, 2024 and sell it today you would earn a total of 4,674 from holding Volatility Shares Trust or generate 347.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 6.63% |
| Values | Daily Returns |
Volatility Shares Trust vs. Amplify Bloomberg Treasury
Performance |
| Timeline |
| Volatility Shares Trust |
| Amplify Bloomberg |
Volatility Shares and Amplify Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volatility Shares and Amplify Bloomberg
The main advantage of trading using opposite Volatility Shares and Amplify Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volatility Shares position performs unexpectedly, Amplify Bloomberg 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 Bloomberg will offset losses from the drop in Amplify Bloomberg's long position.| Volatility Shares vs. Grayscale Bitcoin Trust | Volatility Shares vs. ProShares Bitcoin Strategy | Volatility Shares vs. Amplify Transformational Data | Volatility Shares vs. First Trust Indxx |
| Amplify Bloomberg vs. Global X Funds | Amplify Bloomberg vs. US Treasury 12 | Amplify Bloomberg vs. Tidal Trust II | Amplify Bloomberg vs. Franklin Liberty Treasury |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |