Correlation Between Vanguard Value and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both Vanguard Value and Amplify Cash 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 Value and Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Value Index and Amplify Cash Flow, you can compare the effects of market volatilities on Vanguard Value and Amplify Cash 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 Value with a short position of Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Value and Amplify Cash.
Diversification Opportunities for Vanguard Value and Amplify Cash
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Amplify is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Value Index and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow and Vanguard Value 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 Value Index are associated (or correlated) with Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of Vanguard Value i.e., Vanguard Value and Amplify Cash go up and down completely randomly.
Pair Corralation between Vanguard Value and Amplify Cash
Considering the 90-day investment horizon Vanguard Value Index is expected to generate 0.67 times more return on investment than Amplify Cash. However, Vanguard Value Index is 1.5 times less risky than Amplify Cash. It trades about 0.17 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.1 per unit of risk. If you would invest 15,843 in Vanguard Value Index on September 1, 2024 and sell it today you would earn a total of 2,344 from holding Vanguard Value Index or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Vanguard Value Index vs. Amplify Cash Flow
Performance |
| Timeline |
| Vanguard Value Index |
| Amplify Cash Flow |
Vanguard Value and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Value and Amplify Cash
The main advantage of trading using opposite Vanguard Value and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Value position performs unexpectedly, Amplify Cash 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 Cash will offset losses from the drop in Amplify Cash's long position.| Vanguard Value vs. Vanguard Growth Index | Vanguard Value vs. Vanguard Small Cap Value | Vanguard Value vs. Vanguard Mid Cap Value | Vanguard Value vs. Vanguard Small Cap Index |
| Amplify Cash vs. Invesco Actively Managed | Amplify Cash vs. iShares Trust | Amplify Cash vs. Xtrackers MSCI Emerging | Amplify Cash vs. iShares MSCI Emerging |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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