Correlation Between ETRACS Quarterly and Starboard Investment

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

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

Diversification Opportunities for ETRACS Quarterly and Starboard Investment

0.06

Correlation Coefficient

ETRACS Quarterly  Starboard Investment

Significant diversification

The 3 months correlation between ETRACS and Starboard is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ETRACS Quarterly Pay and Starboard Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starboard Investment and ETRACS Quarterly 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 ETRACS Quarterly Pay are associated (or correlated) with Starboard Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starboard Investment has no effect on the direction of ETRACS Quarterly i.e., ETRACS Quarterly and Starboard Investment go up and down completely randomly.

Pair Corralation between ETRACS Quarterly and Starboard Investment

Given the investment horizon of 90 days ETRACS Quarterly Pay is expected to generate 1.38 times more return on investment than Starboard Investment. However, ETRACS Quarterly is 1.38 times more volatile than Starboard Investment Trust. It trades about 0.19 of its potential returns per unit of risk. Starboard Investment Trust is currently generating about -0.11 per unit of risk. If you would invest  5,768  in ETRACS Quarterly Pay on December 29, 2024 and sell it today you would earn a total of  1,088  from holding ETRACS Quarterly Pay or generate 18.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ETRACS Quarterly Pay  vs.  Starboard Investment Trust

ETRACS Quarterly Pay

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ETRACS Quarterly Pay are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, ETRACS Quarterly reported solid returns over the last few months and may actually be approaching a breakup point.

Starboard Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Starboard Investment Trust 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 strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with ETRACS Quarterly and Starboard Investment

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

The idea behind ETRACS Quarterly Pay and Starboard Investment 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.