Correlation Between Amplify BlackSwan and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both Amplify BlackSwan and ProShares MSCI 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 Amplify BlackSwan and ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amplify BlackSwan Growth and ProShares MSCI Transformational, you can compare the effects of market volatilities on Amplify BlackSwan and ProShares MSCI 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 Amplify BlackSwan with a short position of ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amplify BlackSwan and ProShares MSCI.
Diversification Opportunities for Amplify BlackSwan and ProShares MSCI
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amplify and ProShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan Growth and ProShares MSCI Transformationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Trans and Amplify BlackSwan 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 Amplify BlackSwan Growth are associated (or correlated) with ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Trans has no effect on the direction of Amplify BlackSwan i.e., Amplify BlackSwan and ProShares MSCI go up and down completely randomly.
Pair Corralation between Amplify BlackSwan and ProShares MSCI
Given the investment horizon of 90 days Amplify BlackSwan Growth is expected to generate 0.73 times more return on investment than ProShares MSCI. However, Amplify BlackSwan Growth is 1.37 times less risky than ProShares MSCI. It trades about 0.24 of its potential returns per unit of risk. ProShares MSCI Transformational is currently generating about 0.17 per unit of risk. If you would invest 2,905 in Amplify BlackSwan Growth on March 22, 2025 and sell it today you would earn a total of 73.00 from holding Amplify BlackSwan Growth or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amplify BlackSwan Growth vs. ProShares MSCI Transformationa
Performance |
| Timeline |
| Amplify BlackSwan Growth |
| ProShares MSCI Trans |
Amplify BlackSwan and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amplify BlackSwan and ProShares MSCI
The main advantage of trading using opposite Amplify BlackSwan and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amplify BlackSwan position performs unexpectedly, ProShares MSCI 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.| Amplify BlackSwan vs. WisdomTree 9060 Balanced | Amplify BlackSwan vs. RPAR Risk Parity | Amplify BlackSwan vs. Cambria Tail Risk | Amplify BlackSwan vs. Aptus Defined Risk |
| ProShares MSCI vs. Innovator Loup Frontier | ProShares MSCI vs. ProShares Pet Care | ProShares MSCI vs. ProShares Online Retail |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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