Correlation Between Aptus Collared and Simplify Exchange
Can any of the company-specific risk be diversified away by investing in both Aptus Collared and Simplify Exchange 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 Simplify Exchange 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 Simplify Exchange Traded, you can compare the effects of market volatilities on Aptus Collared and Simplify Exchange 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 Simplify Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Collared and Simplify Exchange.
Diversification Opportunities for Aptus Collared and Simplify Exchange
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aptus and Simplify is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Collared Income and Simplify Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Exchange Traded 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 Simplify Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Exchange Traded has no effect on the direction of Aptus Collared i.e., Aptus Collared and Simplify Exchange go up and down completely randomly.
Pair Corralation between Aptus Collared and Simplify Exchange
Given the investment horizon of 90 days Aptus Collared Income is expected to under-perform the Simplify Exchange. In addition to that, Aptus Collared is 1.95 times more volatile than Simplify Exchange Traded. It trades about -0.03 of its total potential returns per unit of risk. Simplify Exchange Traded is currently generating about 0.06 per unit of volatility. If you would invest 3,149 in Simplify Exchange Traded on August 19, 2025 and sell it today you would earn a total of 12.00 from holding Simplify Exchange Traded or generate 0.38% 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. Simplify Exchange Traded
Performance |
| Timeline |
| Aptus Collared Income |
| Simplify Exchange Traded |
Aptus Collared and Simplify Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Collared and Simplify Exchange
The main advantage of trading using opposite Aptus Collared and Simplify Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Collared position performs unexpectedly, Simplify Exchange 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 Simplify Exchange will offset losses from the drop in Simplify Exchange's long position.| Aptus Collared vs. Dimensional ETF Trust | Aptus Collared vs. Trust For Professional | Aptus Collared vs. Xtrackers SP 500 | Aptus Collared vs. Goldman Sachs MarketBeta |
| Simplify Exchange vs. Northern Lights | Simplify Exchange vs. First Trust Exchange Traded | Simplify Exchange vs. First Trust Exchange Traded | Simplify Exchange vs. AIM ETF Products |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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