Correlation Between Dell Technologies and Listed Funds

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

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

Diversification Opportunities for Dell Technologies and Listed Funds

-0.41

Correlation Coefficient

Dell Technologies  Listed Funds

Very good diversification

The 3 months correlation between Dell and Listed is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dell Technologies 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 Dell Technologies 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 Dell Technologies 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 Dell Technologies i.e., Dell Technologies and Listed Funds go up and down completely randomly.

Pair Corralation between Dell Technologies and Listed Funds

Given the investment horizon of 90 days Dell Technologies is expected to under-perform the Listed Funds. In addition to that, Dell Technologies is 4.19 times more volatile than Listed Funds Trust. It trades about -0.09 of its total potential returns per unit of risk. Listed Funds Trust is currently generating about 0.12 per unit of volatility. If you would invest  3,205  in Listed Funds Trust on December 27, 2024 and sell it today you would earn a total of  170.00  from holding Listed Funds Trust or generate 5.3% return on investment over 90 days.

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

Dell Technologies  vs.  Listed Funds Trust

Dell Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dell Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Listed Funds Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Listed Funds Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Listed Funds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Dell Technologies and Listed Funds

The main advantage of trading using opposite Dell Technologies and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dell Technologies 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 Dell Technologies 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.