Correlation Between Aptus Collared and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Aptus Collared and Amplify BlackSwan 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 Aptus Collared and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptus Collared Income and Amplify BlackSwan Growth, you can compare the effects of market volatilities on Aptus Collared and Amplify BlackSwan 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 Aptus Collared with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Collared and Amplify BlackSwan.
Diversification Opportunities for Aptus Collared and Amplify BlackSwan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aptus and Amplify is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Collared Income and Amplify BlackSwan Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan Growth and Aptus Collared 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 Aptus Collared Income are associated (or correlated) with Amplify BlackSwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify BlackSwan Growth has no effect on the direction of Aptus Collared i.e., Aptus Collared and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Aptus Collared and Amplify BlackSwan
Given the investment horizon of 90 days Aptus Collared is expected to generate 1.88 times less return on investment than Amplify BlackSwan. But when comparing it to its historical volatility, Aptus Collared Income is 1.25 times less risky than Amplify BlackSwan. It trades about 0.12 of its potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,959 in Amplify BlackSwan Growth on November 18, 2024 and sell it today you would earn a total of 66.00 from holding Amplify BlackSwan Growth or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptus Collared Income vs. Amplify BlackSwan Growth
Performance |
| Timeline |
| Aptus Collared Income |
| Amplify BlackSwan Growth |
Aptus Collared and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Collared and Amplify BlackSwan
The main advantage of trading using opposite Aptus Collared and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Collared position performs unexpectedly, Amplify BlackSwan 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 BlackSwan will offset losses from the drop in Amplify BlackSwan's long position.| Aptus Collared vs. Aptus Drawdown Managed | Aptus Collared vs. Aptus Defined Risk | Aptus Collared vs. Opus Small Cap | Aptus Collared vs. Anfield Universal Fixed |
| Amplify BlackSwan vs. WisdomTree 9060 Balanced | Amplify BlackSwan vs. RPAR Risk Parity | Amplify BlackSwan vs. Cambria Tail Risk | Amplify BlackSwan vs. Aptus Defined Risk |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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