Correlation Between Amplify BlackSwan and Aptus Collared
Can any of the company-specific risk be diversified away by investing in both Amplify BlackSwan 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 Amplify BlackSwan and Aptus Collared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify BlackSwan Growth and Aptus Collared Income, you can compare the effects of market volatilities on Amplify BlackSwan 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 Amplify BlackSwan with a short position of Aptus Collared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify BlackSwan and Aptus Collared.
Diversification Opportunities for Amplify BlackSwan and Aptus Collared
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amplify and Aptus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan Growth 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 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 Growth 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 Amplify BlackSwan i.e., Amplify BlackSwan and Aptus Collared go up and down completely randomly.
Pair Corralation between Amplify BlackSwan and Aptus Collared
Given the investment horizon of 90 days Amplify BlackSwan Growth is expected to generate 1.25 times more return on investment than Aptus Collared. However, Amplify BlackSwan is 1.25 times more volatile than Aptus Collared Income. It trades about 0.17 of its potential returns per unit of risk. Aptus Collared Income is currently generating about 0.12 per unit of risk. If you would invest 2,959 in Amplify BlackSwan Growth on November 18, 2024 and sell it today you would earn a total of 66.00 from holding Amplify BlackSwan Growth or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amplify BlackSwan Growth vs. Aptus Collared Income
Performance |
| Timeline |
| Amplify BlackSwan Growth |
| Aptus Collared Income |
Amplify BlackSwan and Aptus Collared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify BlackSwan and Aptus Collared
The main advantage of trading using opposite Amplify BlackSwan and Aptus Collared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify BlackSwan 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.| Amplify BlackSwan vs. WisdomTree 9060 Balanced | Amplify BlackSwan vs. RPAR Risk Parity | Amplify BlackSwan vs. Cambria Tail Risk | Amplify BlackSwan vs. Aptus Defined Risk |
| Aptus Collared vs. Aptus Drawdown Managed | Aptus Collared vs. Aptus Defined Risk | Aptus Collared vs. Opus Small Cap | Aptus Collared vs. Anfield Universal Fixed |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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