Correlation Between Amplify International and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Amplify International 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 Amplify International and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify International Enhanced and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on Amplify International 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 Amplify International with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify International and Amplify BlackSwan.
Diversification Opportunities for Amplify International and Amplify BlackSwan
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amplify and Amplify is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amplify International Enhanced 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 Amplify International 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 Amplify International Enhanced 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 Amplify International i.e., Amplify International and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Amplify International and Amplify BlackSwan
Given the investment horizon of 90 days Amplify International is expected to generate 1.14 times less return on investment than Amplify BlackSwan. In addition to that, Amplify International is 1.17 times more volatile than Amplify BlackSwan ISWN. It trades about 0.15 of its total potential returns per unit of risk. Amplify BlackSwan ISWN is currently generating about 0.2 per unit of volatility. If you would invest 1,841 in Amplify BlackSwan ISWN on September 13, 2024 and sell it today you would earn a total of 44.00 from holding Amplify BlackSwan ISWN or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify International Enhanced vs. Amplify BlackSwan ISWN
Performance |
| Timeline |
| Amplify International |
| Amplify BlackSwan ISWN |
Amplify International and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify International and Amplify BlackSwan
The main advantage of trading using opposite Amplify International and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify International 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.| Amplify International vs. Amplify ETF Trust | Amplify International vs. Amplify CWP Enhanced | Amplify International vs. Schwab International Dividend | Amplify International vs. iShares Trust |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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