Correlation Between SPDR SP and Amplify BlackSwan

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

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

Diversification Opportunities for SPDR SP and Amplify BlackSwan

0.77

Correlation Coefficient

SPDR SP  Amplify BlackSwan

Poor diversification

The 3 months correlation between SPDR and Amplify is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Emerging 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 SPDR SP 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 SPDR SP Emerging 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 SPDR SP i.e., SPDR SP and Amplify BlackSwan go up and down completely randomly.

Pair Corralation between SPDR SP and Amplify BlackSwan

Given the investment horizon of 90 days SPDR SP is expected to generate 13.72 times less return on investment than Amplify BlackSwan. In addition to that, SPDR SP is 1.3 times more volatile than Amplify BlackSwan Growth. It trades about 0.01 of its total potential returns per unit of risk. Amplify BlackSwan Growth is currently generating about 0.2 per unit of volatility. If you would invest  3,012  in Amplify BlackSwan Growth on July 15, 2025 and sell it today you would earn a total of  183.00  from holding Amplify BlackSwan Growth or generate 6.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SPDR SP Emerging  vs.  Amplify BlackSwan Growth

SPDR SP Emerging

Risk-Adjusted Performance

Weakest

Over the last 90 days SPDR SP Emerging has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, SPDR SP is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Amplify BlackSwan Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amplify BlackSwan Growth are ranked lower than 15 (%) 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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SPDR SP and Amplify BlackSwan

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

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.