Correlation Between RiverFront Dynamic and Aptus Collared

Can any of the company-specific risk be diversified away by investing in both RiverFront Dynamic and Aptus Collared 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 RiverFront Dynamic and Aptus Collared into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RiverFront Dynamic Dividend and Aptus Collared Income, you can compare the effects of market volatilities on RiverFront Dynamic and Aptus Collared 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 RiverFront Dynamic with a short position of Aptus Collared. Check out your portfolio center. Please also check ongoing floating volatility patterns of RiverFront Dynamic and Aptus Collared.

Diversification Opportunities for RiverFront Dynamic and Aptus Collared

0.63

Correlation Coefficient

RiverFront Dynamic  Aptus Collared

Poor diversification

The 3 months correlation between RiverFront and Aptus is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding RiverFront Dynamic Dividend and Aptus Collared Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Collared Income and RiverFront Dynamic 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 RiverFront Dynamic Dividend are associated (or correlated) with Aptus Collared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Collared Income has no effect on the direction of RiverFront Dynamic i.e., RiverFront Dynamic and Aptus Collared go up and down completely randomly.

Pair Corralation between RiverFront Dynamic and Aptus Collared

Given the investment horizon of 90 days RiverFront Dynamic Dividend is expected to generate 1.33 times more return on investment than Aptus Collared. However, RiverFront Dynamic is 1.33 times more volatile than Aptus Collared Income. It trades about 0.09 of its potential returns per unit of risk. Aptus Collared Income is currently generating about 0.11 per unit of risk. If you would invest  6,106  in RiverFront Dynamic Dividend on September 5, 2025 and sell it today you would earn a total of  239.00  from holding RiverFront Dynamic Dividend or generate 3.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

RiverFront Dynamic Dividend  vs.  Aptus Collared Income

RiverFront Dynamic

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in RiverFront Dynamic Dividend are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, RiverFront Dynamic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aptus Collared Income

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Aptus Collared Income are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Aptus Collared is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with RiverFront Dynamic and Aptus Collared

The main advantage of trading using opposite RiverFront Dynamic and Aptus Collared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RiverFront Dynamic position performs unexpectedly, Aptus Collared 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 Aptus Collared will offset losses from the drop in Aptus Collared's long position.

The idea behind RiverFront Dynamic Dividend and Aptus Collared Income 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.