Correlation Between Amplify BlackSwan and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Amplify BlackSwan and Amplify ETF 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 Amplify ETF 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 Amplify ETF Trust, you can compare the effects of market volatilities on Amplify BlackSwan and Amplify ETF 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 Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify BlackSwan and Amplify ETF.
Diversification Opportunities for Amplify BlackSwan and Amplify ETF
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amplify and Amplify is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan ISWN and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify ETF Trust 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 Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of Amplify BlackSwan i.e., Amplify BlackSwan and Amplify ETF go up and down completely randomly.
Pair Corralation between Amplify BlackSwan and Amplify ETF
Given the investment horizon of 90 days Amplify BlackSwan ISWN is expected to generate 0.79 times more return on investment than Amplify ETF. However, Amplify BlackSwan ISWN is 1.26 times less risky than Amplify ETF. It trades about 0.05 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.03 per unit of risk. If you would invest 1,881 in Amplify BlackSwan ISWN on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Amplify BlackSwan ISWN or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify BlackSwan ISWN vs. Amplify ETF Trust
Performance |
| Timeline |
| Amplify BlackSwan ISWN |
| Amplify ETF Trust |
Amplify BlackSwan and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify BlackSwan and Amplify ETF
The main advantage of trading using opposite Amplify BlackSwan and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify BlackSwan position performs unexpectedly, Amplify ETF 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 ETF will offset losses from the drop in Amplify ETF'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 |
| Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Invesco SP 500 | Amplify ETF vs. Aquagold International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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