Correlation Between Amplify BlackSwan and Aptus Defined
Can any of the company-specific risk be diversified away by investing in both Amplify BlackSwan and Aptus Defined 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 BlackSwan and Aptus Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify BlackSwan ISWN and Aptus Defined Risk, you can compare the effects of market volatilities on Amplify BlackSwan and Aptus Defined 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 BlackSwan with a short position of Aptus Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify BlackSwan and Aptus Defined.
Diversification Opportunities for Amplify BlackSwan and Aptus Defined
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amplify and Aptus is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan ISWN and Aptus Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Defined Risk and Amplify BlackSwan 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 BlackSwan ISWN are associated (or correlated) with Aptus Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Defined Risk has no effect on the direction of Amplify BlackSwan i.e., Amplify BlackSwan and Aptus Defined go up and down completely randomly.
Pair Corralation between Amplify BlackSwan and Aptus Defined
Given the investment horizon of 90 days Amplify BlackSwan ISWN is expected to under-perform the Aptus Defined. In addition to that, Amplify BlackSwan is 1.75 times more volatile than Aptus Defined Risk. It trades about -0.12 of its total potential returns per unit of risk. Aptus Defined Risk is currently generating about 0.03 per unit of volatility. If you would invest 2,809 in Aptus Defined Risk on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Aptus Defined Risk or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify BlackSwan ISWN vs. Aptus Defined Risk
Performance |
| Timeline |
| Amplify BlackSwan ISWN |
| Aptus Defined Risk |
Amplify BlackSwan and Aptus Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify BlackSwan and Aptus Defined
The main advantage of trading using opposite Amplify BlackSwan and Aptus Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify BlackSwan position performs unexpectedly, Aptus Defined 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 Aptus Defined will offset losses from the drop in Aptus Defined's long position.| 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 |
| Aptus Defined vs. Amplify BlackSwan Growth | Aptus Defined vs. Aptus Collared Income | Aptus Defined vs. Aptus Drawdown Managed | Aptus Defined vs. Cambria Tail 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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