Correlation Between Amplify ETF and VanEck Low
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and VanEck Low 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 Low 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 Low Carbon, you can compare the effects of market volatilities on Amplify ETF and VanEck Low 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 Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and VanEck Low.
Diversification Opportunities for Amplify ETF and VanEck Low
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amplify and VanEck is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and VanEck Low Carbon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Low Carbon 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 Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Low Carbon has no effect on the direction of Amplify ETF i.e., Amplify ETF and VanEck Low go up and down completely randomly.
Pair Corralation between Amplify ETF and VanEck Low
Given the investment horizon of 90 days Amplify ETF Trust is expected to generate 1.02 times more return on investment than VanEck Low. However, Amplify ETF is 1.02 times more volatile than VanEck Low Carbon. It trades about 0.27 of its potential returns per unit of risk. VanEck Low Carbon is currently generating about -0.09 per unit of risk. If you would invest 5,419 in Amplify ETF Trust on August 23, 2024 and sell it today you would earn a total of 592.00 from holding Amplify ETF Trust or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify ETF Trust vs. VanEck Low Carbon
Performance |
| Timeline |
| Amplify ETF Trust |
| VanEck Low Carbon |
Amplify ETF and VanEck Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and VanEck Low
The main advantage of trading using opposite Amplify ETF and VanEck Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, VanEck Low 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 Low will offset losses from the drop in VanEck Low's long position.| Amplify ETF vs. Global X FinTech | Amplify ETF vs. Amplify Online Retail | Amplify ETF vs. First Trust Cloud | Amplify ETF vs. Amplify ETF Trust |
| VanEck Low vs. iShares Exponential Technologies | VanEck Low vs. Invesco Solar ETF | VanEck Low vs. First Trust NASDAQ | VanEck Low vs. Global X Autonomous |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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