Correlation Between Core Alternative and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Core Alternative 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 Core Alternative and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Alternative ETF and Amplify BlackSwan Growth, you can compare the effects of market volatilities on Core Alternative 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 Core Alternative with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Alternative and Amplify BlackSwan.
Diversification Opportunities for Core Alternative and Amplify BlackSwan
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Core and Amplify is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Core Alternative ETF 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 Core Alternative 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 Core Alternative ETF 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 Core Alternative i.e., Core Alternative and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Core Alternative and Amplify BlackSwan
Given the investment horizon of 90 days Core Alternative ETF is expected to under-perform the Amplify BlackSwan. In addition to that, Core Alternative is 1.39 times more volatile than Amplify BlackSwan Growth. It trades about -0.01 of its total potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.17 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Alternative ETF vs. Amplify BlackSwan Growth
Performance |
| Timeline |
| Core Alternative ETF |
| Amplify BlackSwan Growth |
Core Alternative and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Alternative and Amplify BlackSwan
The main advantage of trading using opposite Core Alternative and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Alternative 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.| Core Alternative vs. AGFiQ Market Neutral | Core Alternative vs. Cambria Global Momentum | Core Alternative vs. Cambria Global Asset | Core Alternative vs. Cambria Emerging Shareholder |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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