Correlation Between Quadratic Interest and Amplify BlackSwan

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

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

Diversification Opportunities for Quadratic Interest and Amplify BlackSwan

-0.1

Correlation Coefficient

Quadratic Interest  Amplify BlackSwan

Good diversification

The 3 months correlation between Quadratic and Amplify is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Quadratic Interest Rate 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 Quadratic Interest 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 Quadratic Interest Rate 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 Quadratic Interest i.e., Quadratic Interest and Amplify BlackSwan go up and down completely randomly.

Pair Corralation between Quadratic Interest and Amplify BlackSwan

Given the investment horizon of 90 days Quadratic Interest is expected to generate 25.87 times less return on investment than Amplify BlackSwan. In addition to that, Quadratic Interest is 1.24 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 0.27 per unit of volatility. If you would invest  2,832  in Amplify BlackSwan Growth on April 25, 2025 and sell it today you would earn a total of  254.00  from holding Amplify BlackSwan Growth or generate 8.97% return on investment over 90 days.

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

Quadratic Interest Rate  vs.  Amplify BlackSwan Growth

Quadratic Interest Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quadratic Interest Rate has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Quadratic Interest is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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 20 (%) 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 Quadratic Interest and Amplify BlackSwan

The main advantage of trading using opposite Quadratic Interest and Amplify BlackSwan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quadratic Interest 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 Quadratic Interest Rate 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.