Correlation Between Aptus Defined and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Aptus Defined 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 Defined 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 Defined Risk and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on Aptus Defined 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 Defined with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Defined and Amplify BlackSwan.
Diversification Opportunities for Aptus Defined and Amplify BlackSwan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aptus and Amplify is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Defined Risk 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 Defined 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 Defined Risk 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 Defined i.e., Aptus Defined and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Aptus Defined and Amplify BlackSwan
Given the investment horizon of 90 days Aptus Defined Risk is expected to generate 0.53 times more return on investment than Amplify BlackSwan. However, Aptus Defined Risk is 1.89 times less risky than Amplify BlackSwan. It trades about 0.12 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 2,756 in Aptus Defined Risk on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Aptus Defined Risk or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aptus Defined Risk vs. Amplify BlackSwan ISWN
Performance |
| Timeline |
| Aptus Defined Risk |
| Amplify BlackSwan ISWN |
Aptus Defined and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Defined and Amplify BlackSwan
The main advantage of trading using opposite Aptus Defined and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Defined 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 Defined vs. Vanguard Intermediate Term Corporate | Aptus Defined vs. Vanguard Short Term Bond | Aptus Defined vs. Vanguard Long Term Corporate | Aptus Defined vs. Vanguard Short Term Treasury |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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