Correlation Between Amplify ETF and VanEck UraniumNuclear

Can any of the company-specific risk be diversified away by investing in both Amplify ETF and VanEck UraniumNuclear 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 UraniumNuclear 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 UraniumNuclear Energy, you can compare the effects of market volatilities on Amplify ETF and VanEck UraniumNuclear 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 UraniumNuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify ETF and VanEck UraniumNuclear.

Diversification Opportunities for Amplify ETF and VanEck UraniumNuclear

0.7

Correlation Coefficient

Amplify ETF  VanEck UraniumNuclear

Poor diversification

The 3 months correlation between Amplify and VanEck is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amplify ETF Trust and VanEck UraniumNuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck UraniumNuclear 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 UraniumNuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck UraniumNuclear has no effect on the direction of Amplify ETF i.e., Amplify ETF and VanEck UraniumNuclear go up and down completely randomly.

Pair Corralation between Amplify ETF and VanEck UraniumNuclear

Allowing for the 90-day total investment horizon Amplify ETF Trust is expected to under-perform the VanEck UraniumNuclear. But the etf apears to be less risky and, when comparing its historical volatility, Amplify ETF Trust is 1.04 times less risky than VanEck UraniumNuclear. The etf trades about -0.18 of its potential returns per unit of risk. The VanEck UraniumNuclear Energy is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  8,289  in VanEck UraniumNuclear Energy on December 27, 2024 and sell it today you would lose (531.00) from holding VanEck UraniumNuclear Energy or give up 6.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amplify ETF Trust  vs.  VanEck UraniumNuclear Energy

Amplify ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amplify ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Etf's forward-looking indicators remain relatively steady which may send shares a bit higher in April 2025. The new chaos may also be a sign of medium-term up-swing for the ETF firm stakeholders.

VanEck UraniumNuclear

Risk-Adjusted Performance

Very Weak

Over the last 90 days VanEck UraniumNuclear Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, VanEck UraniumNuclear is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Amplify ETF and VanEck UraniumNuclear

The main advantage of trading using opposite Amplify ETF and VanEck UraniumNuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify ETF position performs unexpectedly, VanEck UraniumNuclear 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 UraniumNuclear will offset losses from the drop in VanEck UraniumNuclear's long position.

The idea behind Amplify ETF Trust and VanEck UraniumNuclear Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.