Correlation Between Advocate Capital and Tidal ETF

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

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

Diversification Opportunities for Advocate Capital and Tidal ETF

0.0

Correlation Coefficient

Advocate Capital  Tidal ETF

Pay attention - limited upside

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

Pair Corralation between Advocate Capital and Tidal ETF

If you would invest  1,286  in Tidal ETF Trust on December 28, 2024 and sell it today you would earn a total of  80.30  from holding Tidal ETF Trust or generate 6.24% return on investment over 90 days.

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

Advocate Capital Management  vs.  Tidal ETF Trust

Advocate Capital Man

Risk-Adjusted Performance

Very Weak

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

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 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Tidal ETF may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Advocate Capital and Tidal ETF

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

The idea behind Advocate Capital Management and Tidal ETF 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.

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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.