Correlation Between Amplify ETF and VanEck Junior
Can any of the company-specific risk be diversified away by investing in both Amplify ETF and VanEck Junior 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 Junior 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 Junior Gold, you can compare the effects of market volatilities on Amplify ETF and VanEck Junior 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 Junior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and VanEck Junior.
Diversification Opportunities for Amplify ETF and VanEck Junior
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and VanEck is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and VanEck Junior Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Junior Gold 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 Junior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Junior Gold has no effect on the direction of Amplify ETF i.e., Amplify ETF and VanEck Junior go up and down completely randomly.
Pair Corralation between Amplify ETF and VanEck Junior
Given the investment horizon of 90 days Amplify ETF is expected to generate 1.38 times less return on investment than VanEck Junior. In addition to that, Amplify ETF is 1.22 times more volatile than VanEck Junior Gold. It trades about 0.17 of its total potential returns per unit of risk. VanEck Junior Gold is currently generating about 0.28 per unit of volatility. If you would invest 4,483 in VanEck Junior Gold on November 3, 2024 and sell it today you would earn a total of 437.00 from holding VanEck Junior Gold or generate 9.75% 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 Junior Gold
Performance |
| Timeline |
| Amplify ETF Trust |
| VanEck Junior Gold |
Amplify ETF and VanEck Junior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify ETF and VanEck Junior
The main advantage of trading using opposite Amplify ETF and VanEck Junior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, VanEck Junior 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 Junior will offset losses from the drop in VanEck Junior's long position.| Amplify ETF vs. Global X Silver | Amplify ETF vs. VanEck Junior Gold | Amplify ETF vs. iShares MSCI Global | Amplify ETF vs. Sprott Physical Silver |
| VanEck Junior vs. VanEck Gold Miners | VanEck Junior vs. Global X Silver | VanEck Junior vs. Amplify ETF Trust | VanEck Junior vs. Pan American Silver |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |