Correlation Between MicroSectors FANG and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both MicroSectors FANG 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 MicroSectors FANG and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroSectors FANG ETN and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on MicroSectors FANG 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 MicroSectors FANG with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroSectors FANG and Amplify BlackSwan.
Diversification Opportunities for MicroSectors FANG and Amplify BlackSwan
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MicroSectors and Amplify is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding MicroSectors FANG ETN 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 MicroSectors FANG 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 MicroSectors FANG ETN 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 MicroSectors FANG i.e., MicroSectors FANG and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between MicroSectors FANG and Amplify BlackSwan
Given the investment horizon of 90 days MicroSectors FANG ETN is expected to generate 1.41 times more return on investment than Amplify BlackSwan. However, MicroSectors FANG is 1.41 times more volatile than Amplify BlackSwan ISWN. It trades about 0.21 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 5,077 in MicroSectors FANG ETN on September 2, 2024 and sell it today you would earn a total of 301.00 from holding MicroSectors FANG ETN or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MicroSectors FANG ETN vs. Amplify BlackSwan ISWN
Performance |
| Timeline |
| MicroSectors FANG ETN |
| Amplify BlackSwan ISWN |
MicroSectors FANG and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroSectors FANG and Amplify BlackSwan
The main advantage of trading using opposite MicroSectors FANG and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroSectors FANG 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.| MicroSectors FANG vs. Freedom Day Dividend | MicroSectors FANG vs. iShares MSCI China | MicroSectors FANG vs. iShares Dividend and | MicroSectors FANG vs. SmartETFs Dividend Builder |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |