Correlation Between Vanguard Mid and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Vanguard Mid and Amplify BlackSwan 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 Vanguard Mid and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Mid Cap Index and Amplify BlackSwan ISWN, you can compare the effects of market volatilities on Vanguard Mid and Amplify BlackSwan 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 Vanguard Mid with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Mid and Amplify BlackSwan.
Diversification Opportunities for Vanguard Mid and Amplify BlackSwan
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Amplify is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mid Cap Index and Amplify BlackSwan ISWN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan ISWN and Vanguard Mid 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 Vanguard Mid Cap Index are associated (or correlated) with Amplify BlackSwan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify BlackSwan ISWN has no effect on the direction of Vanguard Mid i.e., Vanguard Mid and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Vanguard Mid and Amplify BlackSwan
Allowing for the 90-day total investment horizon Vanguard Mid Cap Index is expected to under-perform the Amplify BlackSwan. But the etf apears to be less risky and, when comparing its historical volatility, Vanguard Mid Cap Index is 1.02 times less risky than Amplify BlackSwan. The etf trades about -0.14 of its potential returns per unit of risk. The Amplify BlackSwan ISWN is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,850 in Amplify BlackSwan ISWN on November 28, 2024 and sell it today you would earn a total of 73.00 from holding Amplify BlackSwan ISWN or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Mid Cap Index vs. Amplify BlackSwan ISWN
Performance |
| Timeline |
| Vanguard Mid Cap |
| Amplify BlackSwan ISWN |
Vanguard Mid and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Mid and Amplify BlackSwan
The main advantage of trading using opposite Vanguard Mid and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Mid position performs unexpectedly, Amplify BlackSwan 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 BlackSwan will offset losses from the drop in Amplify BlackSwan's long position.| Vanguard Mid vs. Vanguard Small Cap Index | Vanguard Mid vs. Vanguard Large Cap Index | Vanguard Mid vs. Vanguard Small Cap Growth | Vanguard Mid vs. Vanguard Small Cap Value |
| 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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |