Correlation Between Listed Funds and Teucrium Wheat

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

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

Diversification Opportunities for Listed Funds and Teucrium Wheat

-0.49

Correlation Coefficient

Listed Funds  Teucrium Wheat

Very good diversification

The 3 months correlation between Listed and Teucrium is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Teucrium Wheat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Wheat and Listed Funds 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 Listed Funds Trust are associated (or correlated) with Teucrium Wheat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Wheat has no effect on the direction of Listed Funds i.e., Listed Funds and Teucrium Wheat go up and down completely randomly.

Pair Corralation between Listed Funds and Teucrium Wheat

Given the investment horizon of 90 days Listed Funds Trust is expected to under-perform the Teucrium Wheat. In addition to that, Listed Funds is 2.04 times more volatile than Teucrium Wheat. It trades about -0.25 of its total potential returns per unit of risk. Teucrium Wheat is currently generating about -0.19 per unit of volatility. If you would invest  537.00  in Teucrium Wheat on October 6, 2024 and sell it today you would lose (59.00) from holding Teucrium Wheat or give up 10.99% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	33.87%
Values	Daily Returns

Listed Funds Trust  vs.  Teucrium Wheat

Listed Funds Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Listed Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Teucrium Wheat

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teucrium Wheat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Listed Funds and Teucrium Wheat

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

The idea behind Listed Funds Trust and Teucrium Wheat 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..