Correlation Between Vanguard Total and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Vanguard Total 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 Total 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 Total Stock and Amplify BlackSwan Growth, you can compare the effects of market volatilities on Vanguard Total 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 Total with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Amplify BlackSwan.
Diversification Opportunities for Vanguard Total and Amplify BlackSwan
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanguard and Amplify is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Stock and Amplify BlackSwan Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan Growth and Vanguard Total 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 Total Stock 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 Growth has no effect on the direction of Vanguard Total i.e., Vanguard Total and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Vanguard Total and Amplify BlackSwan
Considering the 90-day investment horizon Vanguard Total Stock is expected to generate 1.26 times more return on investment than Amplify BlackSwan. However, Vanguard Total is 1.26 times more volatile than Amplify BlackSwan Growth. It trades about 0.21 of its potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.17 per unit of risk. If you would invest 28,637 in Vanguard Total Stock on August 31, 2024 and sell it today you would earn a total of 1,183 from holding Vanguard Total Stock or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Total Stock vs. Amplify BlackSwan Growth
Performance |
| Timeline |
| Vanguard Total Stock |
| Amplify BlackSwan Growth |
Vanguard Total and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Total and Amplify BlackSwan
The main advantage of trading using opposite Vanguard Total and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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 Total vs. Vanguard SP 500 | Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Real Estate | Vanguard Total vs. Vanguard Total Bond |
| Amplify BlackSwan vs. Aptus Collared Income | Amplify BlackSwan vs. Core Alternative ETF | Amplify BlackSwan vs. Aptus Drawdown Managed | Amplify BlackSwan 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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