Correlation Between Voya Global and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Voya Global 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 Voya Global and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Advantage and Amplify ETF Trust, you can compare the effects of market volatilities on Voya Global 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 Voya Global with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Amplify ETF.
Diversification Opportunities for Voya Global and Amplify ETF
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Amplify is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage 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 Voya Global 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 Voya Global Advantage 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 Voya Global i.e., Voya Global and Amplify ETF go up and down completely randomly.
Pair Corralation between Voya Global and Amplify ETF
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.18 times more return on investment than Amplify ETF. However, Voya Global Advantage is 5.56 times less risky than Amplify ETF. It trades about 0.16 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.01 per unit of risk. If you would invest 785.00 in Voya Global Advantage on August 27, 2024 and sell it today you would earn a total of 179.00 from holding Voya Global Advantage or generate 22.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Global Advantage vs. Amplify ETF Trust
Performance |
| Timeline |
| Voya Global Advantage |
| Amplify ETF Trust |
Voya Global and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Amplify ETF
The main advantage of trading using opposite Voya Global and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global 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.| Voya Global vs. Eaton Vance Tax | Voya Global vs. Eaton Vance Risk | Voya Global vs. Blackrock Muniholdings Closed | Voya Global vs. DTF Tax Free |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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