Correlation Between Simplify Exchange and Amplify BlackSwan
Can any of the company-specific risk be diversified away by investing in both Simplify Exchange 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 Simplify Exchange and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simplify Exchange Traded and Amplify BlackSwan Growth, you can compare the effects of market volatilities on Simplify Exchange 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 Simplify Exchange with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Exchange and Amplify BlackSwan.
Diversification Opportunities for Simplify Exchange and Amplify BlackSwan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simplify and Amplify is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Exchange Traded 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 Simplify Exchange 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 Simplify Exchange Traded 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 Simplify Exchange i.e., Simplify Exchange and Amplify BlackSwan go up and down completely randomly.
Pair Corralation between Simplify Exchange and Amplify BlackSwan
Given the investment horizon of 90 days Simplify Exchange is expected to generate 1.24 times less return on investment than Amplify BlackSwan. In addition to that, Simplify Exchange is 1.08 times more volatile than Amplify BlackSwan Growth. It trades about 0.06 of its total potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.08 per unit of volatility. If you would invest 2,880 in Amplify BlackSwan Growth on March 15, 2025 and sell it today you would earn a total of 104.00 from holding Amplify BlackSwan Growth or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simplify Exchange Traded vs. Amplify BlackSwan Growth
Performance |
| Timeline |
| Simplify Exchange Traded |
| Amplify BlackSwan Growth |
Simplify Exchange and Amplify BlackSwan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simplify Exchange and Amplify BlackSwan
The main advantage of trading using opposite Simplify Exchange and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simplify Exchange 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.| Simplify Exchange vs. Simplify Equity PLUS | Simplify Exchange vs. Simplify Volatility Premium | Simplify Exchange vs. Simplify Exchange Traded | Simplify Exchange vs. Simplify Equity PLUS |
| Amplify BlackSwan vs. WisdomTree 9060 Balanced | Amplify BlackSwan vs. RPAR Risk Parity | Amplify BlackSwan vs. Cambria Tail Risk | 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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