Correlation Between ETF Series and Aptus Collared
Can any of the company-specific risk be diversified away by investing in both ETF Series and Aptus Collared 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 ETF Series and Aptus Collared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETF Series Solutions and Aptus Collared Income, you can compare the effects of market volatilities on ETF Series and Aptus Collared 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 ETF Series with a short position of Aptus Collared. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETF Series and Aptus Collared.
Diversification Opportunities for ETF Series and Aptus Collared
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ETF and Aptus is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ETF Series Solutions and Aptus Collared Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Collared Income and ETF Series 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 ETF Series Solutions are associated (or correlated) with Aptus Collared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Collared Income has no effect on the direction of ETF Series i.e., ETF Series and Aptus Collared go up and down completely randomly.
Pair Corralation between ETF Series and Aptus Collared
Given the investment horizon of 90 days ETF Series is expected to generate 1.02 times less return on investment than Aptus Collared. In addition to that, ETF Series is 1.48 times more volatile than Aptus Collared Income. It trades about 0.21 of its total potential returns per unit of risk. Aptus Collared Income is currently generating about 0.32 per unit of volatility. If you would invest 3,955 in Aptus Collared Income on September 3, 2024 and sell it today you would earn a total of 156.00 from holding Aptus Collared Income or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ETF Series Solutions vs. Aptus Collared Income
Performance |
| Timeline |
| ETF Series Solutions |
| Aptus Collared Income |
ETF Series and Aptus Collared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETF Series and Aptus Collared
The main advantage of trading using opposite ETF Series and Aptus Collared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETF Series position performs unexpectedly, Aptus Collared 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 Collared will offset losses from the drop in Aptus Collared's long position.| ETF Series vs. Core Alternative ETF | ETF Series vs. Aptus Drawdown Managed | ETF Series vs. Amplify BlackSwan Growth | ETF Series vs. Invesco SP 500 |
| Aptus Collared vs. Core Alternative ETF | Aptus Collared vs. Aptus Drawdown Managed | Aptus Collared vs. Amplify BlackSwan Growth | Aptus Collared vs. Invesco SP 500 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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