Correlation Between STF Tactical and Akros Monthly

Can any of the company-specific risk be diversified away by investing in both STF Tactical and Akros Monthly 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 Akros Monthly 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 Akros Monthly Payout, you can compare the effects of market volatilities on STF Tactical and Akros Monthly 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 Akros Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of STF Tactical and Akros Monthly.

Diversification Opportunities for STF Tactical and Akros Monthly

0.93

Correlation Coefficient

STF Tactical  Akros Monthly

Almost no diversification

The 3 months correlation between STF and Akros is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding STF Tactical Growth and Akros Monthly Payout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akros Monthly Payout 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 Akros Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akros Monthly Payout has no effect on the direction of STF Tactical i.e., STF Tactical and Akros Monthly go up and down completely randomly.

Pair Corralation between STF Tactical and Akros Monthly

Considering the 90-day investment horizon STF Tactical Growth is expected to generate 0.11 times more return on investment than Akros Monthly. However, STF Tactical Growth is 9.42 times less risky than Akros Monthly. It trades about -0.1 of its potential returns per unit of risk. Akros Monthly Payout is currently generating about -0.13 per unit of risk. If you would invest  3,483  in STF Tactical Growth on December 26, 2024 and sell it today you would lose (289.00) from holding STF Tactical Growth or give up 8.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

STF Tactical Growth  vs.  Akros Monthly Payout

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.

Akros Monthly Payout

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akros Monthly Payout has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with STF Tactical and Akros Monthly

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

The idea behind STF Tactical Growth and Akros Monthly Payout 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.