Correlation Between Aptus Collared and Listed Funds

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

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

Diversification Opportunities for Aptus Collared and Listed Funds

0.76

Correlation Coefficient

Aptus Collared  Listed Funds

Poor diversification

The 3 months correlation between Aptus and Listed is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Collared Income and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and Aptus Collared 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 Aptus Collared Income are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of Aptus Collared i.e., Aptus Collared and Listed Funds go up and down completely randomly.

Pair Corralation between Aptus Collared and Listed Funds

Given the investment horizon of 90 days Aptus Collared Income is expected to under-perform the Listed Funds. But the etf apears to be less risky and, when comparing its historical volatility, Aptus Collared Income is 1.41 times less risky than Listed Funds. The etf trades about -0.12 of its potential returns per unit of risk. The Listed Funds Trust is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  2,640  in Listed Funds Trust on October 11, 2024 and sell it today you would earn a total of  77.00  from holding Listed Funds Trust or generate 2.92% return on investment over 90 days.

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

Aptus Collared Income  vs.  Listed Funds Trust

Aptus Collared Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aptus Collared Income has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Aptus Collared is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Listed Funds Trust

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Listed Funds Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Listed Funds may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Aptus Collared and Listed Funds

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

The idea behind Aptus Collared Income and Listed Funds Trust 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.