Correlation Between Listed Funds and Changebridge Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Listed Funds and Changebridge Capital 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 Listed Funds and Changebridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Changebridge Capital Sustainable, you can compare the effects of market volatilities on Listed Funds and Changebridge Capital 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 Listed Funds with a short position of Changebridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Changebridge Capital.

Diversification Opportunities for Listed Funds and Changebridge Capital

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Listed and Changebridge is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Changebridge Capital Sustainab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changebridge Capital and Listed Funds 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 Listed Funds Trust are associated (or correlated) with Changebridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changebridge Capital has no effect on the direction of Listed Funds i.e., Listed Funds and Changebridge Capital go up and down completely randomly.

Pair Corralation between Listed Funds and Changebridge Capital

Given the investment horizon of 90 days Listed Funds Trust is expected to generate 0.53 times more return on investment than Changebridge Capital. However, Listed Funds Trust is 1.88 times less risky than Changebridge Capital. It trades about 0.15 of its potential returns per unit of risk. Changebridge Capital Sustainable is currently generating about 0.02 per unit of risk. 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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Listed Funds Trust  vs.  Changebridge Capital Sustainab

 Performance 
       Timeline  
Listed Funds Trust 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
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.
Changebridge Capital 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Changebridge Capital Sustainable are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Changebridge Capital may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Listed Funds and Changebridge Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Listed Funds and Changebridge Capital

The main advantage of trading using opposite Listed Funds and Changebridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, Changebridge Capital 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 Changebridge Capital will offset losses from the drop in Changebridge Capital's long position.
The idea behind Listed Funds Trust and Changebridge Capital Sustainable 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation