Correlation Between IShares Core and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core Growth and Amplify BlackSwan Growth, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amplify BlackSwan.
Diversification Opportunities for IShares Core and Amplify BlackSwan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amplify is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core Growth 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 IShares Core 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 iShares Core Growth 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 IShares Core i.e., IShares Core and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between IShares Core and Amplify BlackSwan
Considering the 90-day investment horizon IShares Core is expected to generate 1.73 times less return on investment than Amplify BlackSwan. But when comparing it to its historical volatility, iShares Core Growth is 1.34 times less risky than Amplify BlackSwan. It trades about 0.11 of its potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,739 in Amplify BlackSwan Growth on September 1, 2024 and sell it today you would earn a total of 354.00 from holding Amplify BlackSwan Growth or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core Growth vs. Amplify BlackSwan Growth
Performance |
| Timeline |
| iShares Core Growth |
| Amplify BlackSwan Growth |
IShares Core and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amplify BlackSwan
The main advantage of trading using opposite IShares Core and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Core Moderate | IShares Core vs. iShares Core Aggressive | IShares Core vs. iShares Core Conservative | IShares Core vs. Vanguard Mega Cap |
| Amplify BlackSwan vs. Core Alternative ETF | Amplify BlackSwan vs. Invesco SP 500 | Amplify BlackSwan vs. ETF Series Solutions | Amplify BlackSwan vs. WisdomTree Target Range |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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