Correlation Between Core Alternative and Amplify BlackSwan

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

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

Diversification Opportunities for Core Alternative and Amplify BlackSwan

-0.59

Correlation Coefficient

Core Alternative  Amplify BlackSwan

Excellent diversification

The 3 months correlation between Core and Amplify is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Core Alternative ETF and Amplify BlackSwan ISWN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify BlackSwan ISWN and Core Alternative 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 Core Alternative ETF 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 ISWN has no effect on the direction of Core Alternative i.e., Core Alternative and Amplify BlackSwan go up and down completely randomly.

Pair Corralation between Core Alternative and Amplify BlackSwan

Given the investment horizon of 90 days Core Alternative ETF is expected to under-perform the Amplify BlackSwan. But the etf apears to be less risky and, when comparing its historical volatility, Core Alternative ETF is 1.62 times less risky than Amplify BlackSwan. The etf trades about -0.09 of its potential returns per unit of risk. The Amplify BlackSwan ISWN is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,951  in Amplify BlackSwan ISWN on May 9, 2025 and sell it today you would earn a total of  97.00  from holding Amplify BlackSwan ISWN or generate 4.97% return on investment over 90 days.

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

Core Alternative ETF  vs.  Amplify BlackSwan ISWN

Core Alternative ETF

Risk-Adjusted Performance

Weakest

Over the last 90 days Core Alternative ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Core Alternative is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Amplify BlackSwan ISWN

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify BlackSwan ISWN are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Amplify BlackSwan is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Core Alternative and Amplify BlackSwan

The main advantage of trading using opposite Core Alternative and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Alternative 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 Core Alternative ETF and Amplify BlackSwan ISWN 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.