Correlation Between Aptus Drawdown and EA Series
Can any of the company-specific risk be diversified away by investing in both Aptus Drawdown and EA Series 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 Aptus Drawdown and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptus Drawdown Managed and EA Series Trust, you can compare the effects of market volatilities on Aptus Drawdown and EA Series 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 Aptus Drawdown with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptus Drawdown and EA Series.
Diversification Opportunities for Aptus Drawdown and EA Series
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aptus and CAOS is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aptus Drawdown Managed and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and Aptus Drawdown 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 Aptus Drawdown Managed are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Aptus Drawdown i.e., Aptus Drawdown and EA Series go up and down completely randomly.
Pair Corralation between Aptus Drawdown and EA Series
Given the investment horizon of 90 days Aptus Drawdown Managed is expected to generate 2.85 times more return on investment than EA Series. However, Aptus Drawdown is 2.85 times more volatile than EA Series Trust. It trades about 0.15 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.11 per unit of risk. If you would invest 4,205 in Aptus Drawdown Managed on September 1, 2024 and sell it today you would earn a total of 596.00 from holding Aptus Drawdown Managed or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aptus Drawdown Managed vs. EA Series Trust
Performance |
| Timeline |
| Aptus Drawdown Managed |
| EA Series Trust |
Aptus Drawdown and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptus Drawdown and EA Series
The main advantage of trading using opposite Aptus Drawdown and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptus Drawdown position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Aptus Drawdown vs. Core Alternative ETF | Aptus Drawdown vs. Invesco SP 500 | Aptus Drawdown vs. ETF Series Solutions | Aptus Drawdown vs. WisdomTree Target Range |
| EA Series vs. Core Alternative ETF | EA Series vs. Invesco SP 500 | EA Series vs. ETF Series Solutions | EA Series vs. WisdomTree Target Range |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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