Correlation Between Tidal ETF and Trust For

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

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

Diversification Opportunities for Tidal ETF and Trust For

-0.83

Correlation Coefficient

Tidal ETF  Trust For

Pay attention - limited upside

The 3 months correlation between Tidal and Trust is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Trust and Trust For Professional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust For Professional and Tidal ETF 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 ETF Trust are associated (or correlated) with Trust For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust For Professional has no effect on the direction of Tidal ETF i.e., Tidal ETF and Trust For go up and down completely randomly.

Pair Corralation between Tidal ETF and Trust For

Given the investment horizon of 90 days Tidal ETF Trust is expected to generate 0.81 times more return on investment than Trust For. However, Tidal ETF Trust is 1.23 times less risky than Trust For. It trades about 0.13 of its potential returns per unit of risk. Trust For Professional is currently generating about -0.09 per unit of risk. If you would invest  2,383  in Tidal ETF Trust on December 29, 2024 and sell it today you would earn a total of  172.00  from holding Tidal ETF Trust or generate 7.22% return on investment over 90 days.

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

Tidal ETF Trust  vs.  Trust For Professional

Tidal ETF Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal ETF Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Tidal ETF may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Trust For Professional

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust For Professional has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Tidal ETF and Trust For

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

The idea behind Tidal ETF Trust and Trust For Professional 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.