Correlation Between EA Series and Syntax

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

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

Diversification Opportunities for EA Series and Syntax

-0.46

Correlation Coefficient

EA Series  Syntax

Very good diversification

The 3 months correlation between STXD and Syntax is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Syntax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntax and EA Series 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 EA Series Trust are associated (or correlated) with Syntax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntax has no effect on the direction of EA Series i.e., EA Series and Syntax go up and down completely randomly.

Pair Corralation between EA Series and Syntax

If you would invest  4,416  in Syntax on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Syntax or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.69%
Values	Daily Returns

EA Series Trust  vs.  Syntax

EA Series Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EA Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, EA Series is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Syntax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Syntax has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Syntax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with EA Series and Syntax

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

The idea behind EA Series Trust and Syntax 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .