Correlation Between GREI and Tidal Trust

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

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

Diversification Opportunities for GREI and Tidal Trust

0.0

Correlation Coefficient

GREI  Tidal Trust

Pay attention - limited upside

The 3 months correlation between GREI and Tidal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GREI and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II and GREI 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 GREI are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of GREI i.e., GREI and Tidal Trust go up and down completely randomly.

Pair Corralation between GREI and Tidal Trust

If you would invest  2,285  in Tidal Trust II on December 28, 2024 and sell it today you would earn a total of  186.00  from holding Tidal Trust II or generate 8.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GREI  vs.  Tidal Trust II

GREI

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, GREI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Tidal Trust II

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Tidal Trust may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GREI and Tidal Trust

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

The idea behind GREI and Tidal Trust II 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.