Correlation Between STF Tactical and Brookstone Yield

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

By analyzing existing cross correlation between STF Tactical Growth and Brookstone Yield ETF, you can compare the effects of market volatilities on STF Tactical and Brookstone Yield 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 STF Tactical with a short position of Brookstone Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of STF Tactical and Brookstone Yield.

Diversification Opportunities for STF Tactical and Brookstone Yield

0.0

Correlation Coefficient

STF Tactical  Brookstone Yield

Pay attention - limited upside

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

Pair Corralation between STF Tactical and Brookstone Yield

If you would invest (100.00) in Brookstone Yield ETF on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Brookstone Yield ETF or generate -100.0% return on investment over 90 days.

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

STF Tactical Growth  vs.  Brookstone Yield ETF

STF Tactical Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days STF Tactical Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Etf's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholders.

Brookstone Yield ETF

Risk-Adjusted Performance

Very Weak

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

Pair Trading with STF Tactical and Brookstone Yield

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

The idea behind STF Tactical Growth and Brookstone Yield ETF 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.