Correlation Between VanEck Video and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both VanEck Video and Amplify ETF 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 Video and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Video Gaming and Amplify ETF Trust, you can compare the effects of market volatilities on VanEck Video and Amplify ETF 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 Video with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Video and Amplify ETF.
Diversification Opportunities for VanEck Video and Amplify ETF
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VanEck and Amplify is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Video Gaming and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust and VanEck Video 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 Video Gaming are associated (or correlated) with Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of VanEck Video i.e., VanEck Video and Amplify ETF go up and down completely randomly.
Pair Corralation between VanEck Video and Amplify ETF
Given the investment horizon of 90 days VanEck Video Gaming is expected to generate 1.05 times more return on investment than Amplify ETF. However, VanEck Video is 1.05 times more volatile than Amplify ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.09 per unit of risk. If you would invest 5,487 in VanEck Video Gaming on September 2, 2024 and sell it today you would earn a total of 2,987 from holding VanEck Video Gaming or generate 54.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Video Gaming vs. Amplify ETF Trust
Performance |
| Timeline |
| VanEck Video Gaming |
| Amplify ETF Trust |
VanEck Video and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Video and Amplify ETF
The main advantage of trading using opposite VanEck Video and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Video position performs unexpectedly, Amplify ETF 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 ETF will offset losses from the drop in Amplify ETF's long position.| VanEck Video vs. Roundhill Video Games | VanEck Video vs. Global X Video | VanEck Video vs. Amplify ETF Trust | VanEck Video vs. Global X Cloud |
| Amplify ETF vs. Global X FinTech | Amplify ETF vs. Amplify Online Retail | Amplify ETF vs. First Trust Cloud | Amplify ETF 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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