Simplify Exchange Correlations

SCY Etf

19.47 0.59 2.94%

The current 90-days correlation between Simplify Exchange Traded and Global X SP is 0.66 (i.e., Poor diversification). The correlation of Simplify Exchange is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Simplify Exchange Correlation With Market

Very poor diversification

The correlation between Simplify Exchange Traded and DJI is 0.85 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Exchange Traded and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Simplify Exchange Traded. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Simplify Etf

0.76	XYLD	Global X SP	Pair Corr
0.81	RYLD	Global X Russell	Pair Corr
0.75	JEPQ	JPMorgan Nasdaq Equity	Pair Corr
0.63	BUYW	Main Buywrite ETF	Pair Corr
0.66	USD	ProShares Ultra Semi	Pair Corr
0.8	GBTC	Grayscale Bitcoin Trust	Pair Corr
0.78	FNGO	MicroSectors FANG Index	Pair Corr
0.74	NAIL	Direxion Daily Homeb	Pair Corr
0.71	DUSL	Direxion Daily Indus	Pair Corr
0.76	TECL	Direxion Daily Technology	Pair Corr
0.78	SPXL	Direxion Daily SP500	Pair Corr
0.78	UPRO	ProShares UltraPro SP500	Pair Corr
0.79	AA	Alcoa Corp	Pair Corr
0.9	HD	Home Depot	Pair Corr
0.96	AXP	American Express	Pair Corr
0.64	WMT	Walmart	Pair Corr
0.9	BAC	Bank of America	Pair Corr
0.84	HPQ	HP Inc	Pair Corr

Moving against Simplify Etf

0.7	NUSI	NEOS ETF Trust Symbol Change	Pair Corr
0.59	IDME	International Drawdown	Pair Corr
0.45	SIXH	ETC 6 Meridian	Pair Corr
0.83	VZ	Verizon Communications Sell-off Trend	Pair Corr
0.77	JNJ	Johnson Johnson	Pair Corr
0.75	KO	Coca Cola Aggressive Push	Pair Corr
0.71	T	ATT Inc Sell-off Trend	Pair Corr
0.68	MCD	McDonalds	Pair Corr
0.54	XOM	Exxon Mobil Corp Earnings Call This Week	Pair Corr
0.5	GDXU	MicroSectors Gold Miners	Pair Corr
0.4	INTC	Intel	Pair Corr
0.35	IBM	International Business	Pair Corr

Related Correlations Analysis

	META	MSFT	UBER	F	T	A	CRM	JPM	MRK	XOM
META		0.11	0.51	-0.55	0.16	0.46	0.39	0.89	-0.64	-0.19	META
MSFT	0.11		-0.56	-0.07	-0.81	0.8	0.89	0.3	0.41	-0.58	MSFT
UBER	0.51	-0.56		-0.23	0.78	-0.33	-0.49	0.43	-0.83	0.51	UBER
F	-0.55	-0.07	-0.23		0.11	-0.21	-0.25	-0.4	0.38	0.47	F
T	0.16	-0.81	0.78	0.11		-0.67	-0.74	0.04	-0.66	0.65	T
A	0.46	0.8	-0.33	-0.21	-0.67		0.86	0.63	0.2	-0.5	A
CRM	0.39	0.89	-0.49	-0.25	-0.74	0.86		0.48	0.25	-0.66	CRM
JPM	0.89	0.3	0.43	-0.4	0.04	0.63	0.48		-0.55	-0.07	JPM
MRK	-0.64	0.41	-0.83	0.38	-0.66	0.2	0.25	-0.55		-0.38	MRK
XOM	-0.19	-0.58	0.51	0.47	0.65	-0.5	-0.66	-0.07	-0.38		XOM
	META	MSFT	UBER	F	T	A	CRM	JPM	MRK	XOM

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

JPM	+ 0.89	META
CRM	+ 0.89	MSFT
CRM	+ 0.86	A
A	+ 0.8	MSFT
T	+ 0.78	UBER
XOM	+ 0.65	T

High negative correlations

MRK	- 0.83	UBER
T	- 0.81	MSFT
CRM	- 0.74	T
A	- 0.67	T
XOM	- 0.66	CRM
MRK	- 0.66	T

Simplify Exchange Competition Risk-Adjusted Indicators

There is a big difference between Simplify Etf performing well and Simplify Exchange ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Simplify Exchange's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
META	1.67	0.06	0.02	(0.01)	2.39	(1.45)	2.96	(4.29)	8.90
MSFT	1.12	(0.16)	0.00	(0.23)	0.00	0.00	2.58	(2.14)	10.31
UBER	1.94	0.34	0.15	0.38	2.15	(2.13)	4.72	(3.13)	12.75
F	1.46	0.10	0.04	0.03	2.22	(1.38)	2.71	(2.89)	10.14
T	0.99	0.37	0.24	0.67	1.40	(1.17)	1.99	(1.21)	11.66
A	1.14	(0.15)	0.00	(0.21)	0.00	0.00	2.92	(2.59)	9.03
CRM	1.39	(0.29)	0.00	(0.28)	0.00	0.00	2.72	(3.53)	8.88
JPM	1.10	0.11	0.06	0.03	1.67	(1.06)	2.16	(2.12)	6.85
MRK	1.21	(0.13)	0.00	0.61	0.00	0.00	2.07	(2.25)	11.58
XOM	1.01	0.20	0.16	0.38	1.21	(1.08)	2.55	(2.36)	5.89

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