Correlation Between Vanguard Small and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard Small 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 Vanguard Small and Amplify ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Small Cap Growth and Amplify ETF Trust, you can compare the effects of market volatilities on Vanguard Small 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 Vanguard Small with a short position of Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Small and Amplify ETF.
Diversification Opportunities for Vanguard Small and Amplify ETF
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Amplify is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Small Cap Growth 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 Vanguard Small 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 Vanguard Small Cap Growth 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 Vanguard Small i.e., Vanguard Small and Amplify ETF go up and down completely randomly.
Pair Corralation between Vanguard Small and Amplify ETF
Considering the 90-day investment horizon Vanguard Small Cap Growth is expected to generate 1.11 times more return on investment than Amplify ETF. However, Vanguard Small is 1.11 times more volatile than Amplify ETF Trust. It trades about 0.05 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about 0.0 per unit of risk. If you would invest 28,198 in Vanguard Small Cap Growth on November 18, 2024 and sell it today you would earn a total of 891.00 from holding Vanguard Small Cap Growth or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Small Cap Growth vs. Amplify ETF Trust
Performance |
| Timeline |
| Vanguard Small Cap |
| Amplify ETF Trust |
Vanguard Small and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Small and Amplify ETF
The main advantage of trading using opposite Vanguard Small and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Small 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.| Vanguard Small vs. Vanguard Mid Cap Growth | Vanguard Small vs. Vanguard Small Cap Value | Vanguard Small vs. Vanguard Mid Cap Value | Vanguard Small vs. Vanguard Growth Index |
| Amplify ETF vs. iShares Dividend and | Amplify ETF vs. Martin Currie Sustainable | Amplify ETF vs. VictoryShares THB Mid | Amplify ETF vs. Mast Global Battery |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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