Correlation Between Aptus Drawdown and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Aptus Drawdown 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 Drawdown 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 Drawdown Managed and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on Aptus Drawdown 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 Drawdown with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Drawdown and Amplify BlackSwan.
Diversification Opportunities for Aptus Drawdown and Amplify BlackSwan
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aptus and Amplify is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Drawdown Managed and Amplify BlackSwan ISWN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan ISWN and Aptus Drawdown 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 Drawdown Managed 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 ISWN has no effect on the direction of Aptus Drawdown i.e., Aptus Drawdown and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Aptus Drawdown and Amplify BlackSwan
Given the investment horizon of 90 days Aptus Drawdown Managed is expected to generate 0.84 times more return on investment than Amplify BlackSwan. However, Aptus Drawdown Managed is 1.2 times less risky than Amplify BlackSwan. It trades about 0.13 of its potential returns per unit of risk. Amplify BlackSwan ISWN is currently generating about 0.01 per unit of risk. If you would invest 3,529 in Aptus Drawdown Managed on September 2, 2024 and sell it today you would earn a total of 1,272 from holding Aptus Drawdown Managed or generate 36.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptus Drawdown Managed vs. Amplify BlackSwan ISWN
Performance |
| Timeline |
| Aptus Drawdown Managed |
| Amplify BlackSwan ISWN |
Aptus Drawdown and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Drawdown and Amplify BlackSwan
The main advantage of trading using opposite Aptus Drawdown and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Drawdown 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 Drawdown vs. Aptus Collared Income | Aptus Drawdown vs. Aptus Defined Risk | Aptus Drawdown vs. Anfield Equity Sector | Aptus Drawdown vs. Opus Small Cap |
| Amplify BlackSwan vs. Amplify BlackSwan Growth | Amplify BlackSwan vs. Amplify ETF Trust | Amplify BlackSwan vs. Amplify Thematic All Stars | 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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