Correlation Between Tidal Trust and FLDM
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and FLDM 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 Tidal Trust and FLDM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and FLDM, you can compare the effects of market volatilities on Tidal Trust and FLDM 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 Tidal Trust with a short position of FLDM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and FLDM.
Diversification Opportunities for Tidal Trust and FLDM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tidal and FLDM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and FLDM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLDM and Tidal Trust 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 Tidal Trust II are associated (or correlated) with FLDM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLDM has no effect on the direction of Tidal Trust i.e., Tidal Trust and FLDM go up and down completely randomly.
Pair Corralation between Tidal Trust and FLDM
If you would invest (100.00) in FLDM on February 1, 2024 and sell it today you would earn a total of 100.00 from holding FLDM 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 |
Tidal Trust II vs. FLDM
Performance |
Timeline |
Tidal Trust II |
FLDM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tidal Trust and FLDM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tidal Trust and FLDM
The main advantage of trading using opposite Tidal Trust and FLDM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, FLDM 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 FLDM will offset losses from the drop in FLDM's long position.Tidal Trust vs. SPDR Dow Jones | Tidal Trust vs. iShares Utilities ETF | Tidal Trust vs. iShares North American |
FLDM vs. Global X Funds | FLDM vs. Humana Inc | FLDM vs. Tema Luxury ETF | FLDM vs. Xtrackers California Municipal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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