Correlation Between VanEck ETF and Amplify
Can any of the company-specific risk be diversified away by investing in both VanEck ETF and Amplify 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 VanEck ETF and Amplify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck ETF Trust and Amplify, you can compare the effects of market volatilities on VanEck ETF and Amplify 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 VanEck ETF with a short position of Amplify. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck ETF and Amplify.
Diversification Opportunities for VanEck ETF and Amplify
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VanEck and Amplify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and Amplify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify and VanEck 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 VanEck ETF Trust are associated (or correlated) with Amplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify has no effect on the direction of VanEck ETF i.e., VanEck ETF and Amplify go up and down completely randomly.
Pair Corralation between VanEck ETF and Amplify
If you would invest 5,283 in VanEck ETF Trust on September 2, 2024 and sell it today you would earn a total of 32.00 from holding VanEck ETF Trust or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
VanEck ETF Trust vs. Amplify
Performance |
| Timeline |
| VanEck ETF Trust |
| Amplify |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VanEck ETF and Amplify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck ETF and Amplify
The main advantage of trading using opposite VanEck ETF and Amplify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF position performs unexpectedly, Amplify 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 will offset losses from the drop in Amplify's long position.| VanEck ETF vs. Janus Detroit Street | VanEck ETF vs. Janus Detroit Street | VanEck ETF vs. BlackRock AAA CLO | VanEck ETF vs. VanEck Investment Grade |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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