Correlation Between Virtus ETF and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both Virtus ETF and Amplify Thematic 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 Virtus ETF and Amplify Thematic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus ETF Trust and Amplify Thematic All Stars, you can compare the effects of market volatilities on Virtus ETF and Amplify Thematic 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 Virtus ETF with a short position of Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus ETF and Amplify Thematic.
Diversification Opportunities for Virtus ETF and Amplify Thematic
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Virtus and Amplify is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Virtus ETF Trust and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All and Virtus 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 Virtus ETF Trust are associated (or correlated) with Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of Virtus ETF i.e., Virtus ETF and Amplify Thematic go up and down completely randomly.
Pair Corralation between Virtus ETF and Amplify Thematic
Given the investment horizon of 90 days Virtus ETF Trust is expected to generate 0.61 times more return on investment than Amplify Thematic. However, Virtus ETF Trust is 1.64 times less risky than Amplify Thematic. It trades about 0.13 of its potential returns per unit of risk. Amplify Thematic All Stars is currently generating about 0.07 per unit of risk. If you would invest 2,680 in Virtus ETF Trust on August 30, 2024 and sell it today you would earn a total of 1,368 from holding Virtus ETF Trust or generate 51.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus ETF Trust vs. Amplify Thematic All Stars
Performance |
| Timeline |
| Virtus ETF Trust |
| Amplify Thematic All |
Virtus ETF and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus ETF and Amplify Thematic
The main advantage of trading using opposite Virtus ETF and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus ETF position performs unexpectedly, Amplify Thematic 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 Thematic will offset losses from the drop in Amplify Thematic's long position.| Virtus ETF vs. iShares Small Cap | Virtus ETF vs. Pacer Cash Cows | Virtus ETF vs. GXO Logistics | Virtus ETF vs. ProShares Pet Care |
| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |