Correlation Between EA Series and Amplify BlackSwan

Can any of the company-specific risk be diversified away by investing in both EA Series 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 EA Series and Amplify BlackSwan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EA Series Trust and Amplify BlackSwan Growth, you can compare the effects of market volatilities on EA Series 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 EA Series with a short position of Amplify BlackSwan. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Amplify BlackSwan.

Diversification Opportunities for EA Series and Amplify BlackSwan

-0.4

Correlation Coefficient

EA Series  Amplify BlackSwan

Very good diversification

The 3 months correlation between BESF and Amplify is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust 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 EA Series 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 EA Series Trust 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 EA Series i.e., EA Series and Amplify BlackSwan go up and down completely randomly.

Pair Corralation between EA Series and Amplify BlackSwan

Given the investment horizon of 90 days EA Series Trust is expected to generate 2.47 times more return on investment than Amplify BlackSwan. However, EA Series is 2.47 times more volatile than Amplify BlackSwan Growth. It trades about 0.23 of its potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.26 per unit of risk. If you would invest  2,560  in EA Series Trust on April 23, 2025 and sell it today you would earn a total of  161.00  from holding EA Series Trust or generate 6.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EA Series Trust  vs.  Amplify BlackSwan Growth

EA Series Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EA Series Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, EA Series reported solid returns over the last few months and may actually be approaching a breakup point.

Amplify BlackSwan Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify BlackSwan Growth are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Amplify BlackSwan may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EA Series and Amplify BlackSwan

The main advantage of trading using opposite EA Series and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series 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.

The idea behind EA Series Trust and Amplify BlackSwan Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.