Correlation Between Amplify BlackSwan and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both Amplify BlackSwan and AGFiQ Market 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 AGFiQ Market 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 AGFiQ Market Neutral, you can compare the effects of market volatilities on Amplify BlackSwan and AGFiQ Market 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 AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify BlackSwan and AGFiQ Market.
Diversification Opportunities for Amplify BlackSwan and AGFiQ Market
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amplify and AGFiQ is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan Growth and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral 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 AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of Amplify BlackSwan i.e., Amplify BlackSwan and AGFiQ Market go up and down completely randomly.
Pair Corralation between Amplify BlackSwan and AGFiQ Market
Given the investment horizon of 90 days Amplify BlackSwan Growth is expected to generate 0.85 times more return on investment than AGFiQ Market. However, Amplify BlackSwan Growth is 1.17 times less risky than AGFiQ Market. It trades about 0.07 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about -0.2 per unit of risk. If you would invest 2,989 in Amplify BlackSwan Growth on August 24, 2024 and sell it today you would earn a total of 32.00 from holding Amplify BlackSwan Growth or generate 1.07% 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 Growth vs. AGFiQ Market Neutral
Performance |
| Timeline |
| Amplify BlackSwan Growth |
| AGFiQ Market Neutral |
Amplify BlackSwan and AGFiQ Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify BlackSwan and AGFiQ Market
The main advantage of trading using opposite Amplify BlackSwan and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify BlackSwan position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market'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 |
| AGFiQ Market vs. Cambria Tail Risk | AGFiQ Market vs. IQ Merger Arbitrage | AGFiQ Market vs. Amplify BlackSwan Growth | AGFiQ Market vs. AdvisorShares Dorsey Wright |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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