Correlation Between Tidal Trust and Kurv Technology

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

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

Diversification Opportunities for Tidal Trust and Kurv Technology

-0.55

Correlation Coefficient

Tidal Trust  Kurv Technology

Excellent diversification

The 3 months correlation between Tidal and Kurv is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Kurv Technology Titans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Technology Titans and Tidal Trust 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 Tidal Trust II are associated (or correlated) with Kurv Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Technology Titans has no effect on the direction of Tidal Trust i.e., Tidal Trust and Kurv Technology go up and down completely randomly.

Pair Corralation between Tidal Trust and Kurv Technology

Given the investment horizon of 90 days Tidal Trust is expected to generate 2.03 times less return on investment than Kurv Technology. But when comparing it to its historical volatility, Tidal Trust II is 1.46 times less risky than Kurv Technology. It trades about 0.06 of its potential returns per unit of risk. Kurv Technology Titans is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,455  in Kurv Technology Titans on September 5, 2024 and sell it today you would earn a total of  243.00  from holding Kurv Technology Titans or generate 9.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	43.12%
Values	Daily Returns

Tidal Trust II  vs.  Kurv Technology Titans

Tidal Trust II

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tidal Trust II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Tidal Trust is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Kurv Technology Titans

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kurv Technology Titans are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Kurv Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tidal Trust and Kurv Technology

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

The idea behind Tidal Trust II and Kurv Technology Titans 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.