Correlation Between Amplify BlackSwan and SPDR SP

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

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

Diversification Opportunities for Amplify BlackSwan and SPDR SP

0.94

Correlation Coefficient

Amplify BlackSwan  SPDR SP

Almost no diversification

The 3 months correlation between Amplify and SPDR is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amplify BlackSwan Growth and SPDR SP Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Emerging and Amplify BlackSwan 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 Amplify BlackSwan Growth are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Emerging has no effect on the direction of Amplify BlackSwan i.e., Amplify BlackSwan and SPDR SP go up and down completely randomly.

Pair Corralation between Amplify BlackSwan and SPDR SP

Given the investment horizon of 90 days Amplify BlackSwan is expected to generate 1.23 times less return on investment than SPDR SP. But when comparing it to its historical volatility, Amplify BlackSwan Growth is 1.21 times less risky than SPDR SP. It trades about 0.27 of its potential returns per unit of risk. SPDR SP Emerging is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  3,527  in SPDR SP Emerging on April 25, 2025 and sell it today you would earn a total of  392.00  from holding SPDR SP Emerging or generate 11.11% return on investment over 90 days.

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

Amplify BlackSwan Growth  vs.  SPDR SP Emerging

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.

SPDR SP Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP Emerging are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, SPDR SP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Amplify BlackSwan and SPDR SP

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

The idea behind Amplify BlackSwan Growth and SPDR SP Emerging 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..