Correlation Between Amplify ETF and VanEck UraniumNuclear
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and VanEck UraniumNuclear 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 ETF and VanEck UraniumNuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify ETF Trust and VanEck UraniumNuclear Energy, you can compare the effects of market volatilities on Amplify ETF and VanEck UraniumNuclear 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 ETF with a short position of VanEck UraniumNuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and VanEck UraniumNuclear.
Diversification Opportunities for Amplify ETF and VanEck UraniumNuclear
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and VanEck is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and VanEck UraniumNuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck UraniumNuclear and Amplify 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 Amplify ETF Trust are associated (or correlated) with VanEck UraniumNuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck UraniumNuclear has no effect on the direction of Amplify ETF i.e., Amplify ETF and VanEck UraniumNuclear go up and down completely randomly.
Pair Corralation between Amplify ETF and VanEck UraniumNuclear
Given the investment horizon of 90 days Amplify ETF is expected to generate 1.36 times less return on investment than VanEck UraniumNuclear. But when comparing it to its historical volatility, Amplify ETF Trust is 1.16 times less risky than VanEck UraniumNuclear. It trades about 0.08 of its potential returns per unit of risk. VanEck UraniumNuclear Energy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,156 in VanEck UraniumNuclear Energy on August 30, 2024 and sell it today you would earn a total of 4,224 from holding VanEck UraniumNuclear Energy or generate 81.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. VanEck UraniumNuclear Energy
Performance |
| Timeline |
| Amplify ETF Trust |
| VanEck UraniumNuclear |
Amplify ETF and VanEck UraniumNuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and VanEck UraniumNuclear
The main advantage of trading using opposite Amplify ETF and VanEck UraniumNuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, VanEck UraniumNuclear 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 VanEck UraniumNuclear will offset losses from the drop in VanEck UraniumNuclear's long position.| Amplify ETF vs. Global X FinTech | Amplify ETF vs. iShares Genomics Immunology | Amplify ETF vs. ABIVAX Socit Anonyme | Amplify ETF vs. HUMANA INC |
| VanEck UraniumNuclear vs. Global X FinTech | VanEck UraniumNuclear vs. iShares Genomics Immunology | VanEck UraniumNuclear vs. ABIVAX Socit Anonyme | VanEck UraniumNuclear vs. HUMANA INC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |