Correlation Between Aptus Collared and Swan Hedged
Can any of the company-specific risk be diversified away by investing in both Aptus Collared and Swan Hedged 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 Aptus Collared and Swan Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptus Collared Income and Swan Hedged Equity, you can compare the effects of market volatilities on Aptus Collared and Swan Hedged 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 Aptus Collared with a short position of Swan Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Collared and Swan Hedged.
Diversification Opportunities for Aptus Collared and Swan Hedged
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aptus and Swan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Collared Income and Swan Hedged Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Hedged Equity and Aptus Collared 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 Aptus Collared Income are associated (or correlated) with Swan Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Hedged Equity has no effect on the direction of Aptus Collared i.e., Aptus Collared and Swan Hedged go up and down completely randomly.
Pair Corralation between Aptus Collared and Swan Hedged
Given the investment horizon of 90 days Aptus Collared is expected to generate 1.09 times less return on investment than Swan Hedged. In addition to that, Aptus Collared is 1.61 times more volatile than Swan Hedged Equity. It trades about 0.04 of its total potential returns per unit of risk. Swan Hedged Equity is currently generating about 0.07 per unit of volatility. If you would invest 2,218 in Swan Hedged Equity on March 24, 2025 and sell it today you would earn a total of 68.00 from holding Swan Hedged Equity or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aptus Collared Income vs. Swan Hedged Equity
Performance |
| Timeline |
| Aptus Collared Income |
| Swan Hedged Equity |
Aptus Collared and Swan Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Collared and Swan Hedged
The main advantage of trading using opposite Aptus Collared and Swan Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Collared position performs unexpectedly, Swan Hedged 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 Swan Hedged will offset losses from the drop in Swan Hedged's long position.| Aptus Collared vs. Aptus Drawdown Managed | Aptus Collared vs. Aptus Defined Risk | Aptus Collared vs. Opus Small Cap | Aptus Collared vs. Anfield Universal Fixed |
| Swan Hedged vs. Amplify BlackSwan Growth | Swan Hedged vs. Invesco SP 500 | Swan Hedged vs. Simplify Exchange Traded | Swan Hedged vs. Simplify Equity PLUS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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