Correlation Between TrueShares Structured and EA Series
Can any of the company-specific risk be diversified away by investing in both TrueShares Structured 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 TrueShares Structured and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrueShares Structured Outcome and EA Series Trust, you can compare the effects of market volatilities on TrueShares Structured 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 TrueShares Structured with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueShares Structured and EA Series.
Diversification Opportunities for TrueShares Structured and EA Series
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TrueShares and MDLV is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Structured Outcome 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 TrueShares Structured 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 TrueShares Structured Outcome 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 TrueShares Structured i.e., TrueShares Structured and EA Series go up and down completely randomly.
Pair Corralation between TrueShares Structured and EA Series
Given the investment horizon of 90 days TrueShares Structured Outcome is expected to generate 1.13 times more return on investment than EA Series. However, TrueShares Structured is 1.13 times more volatile than EA Series Trust. It trades about 0.35 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.2 per unit of risk. If you would invest 3,936 in TrueShares Structured Outcome on September 1, 2024 and sell it today you would earn a total of 175.00 from holding TrueShares Structured Outcome or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TrueShares Structured Outcome vs. EA Series Trust
Performance |
| Timeline |
| TrueShares Structured |
| EA Series Trust |
TrueShares Structured and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrueShares Structured and EA Series
The main advantage of trading using opposite TrueShares Structured and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueShares Structured 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.| TrueShares Structured vs. Innovator ETFs Trust | TrueShares Structured vs. First Trust Cboe | TrueShares Structured vs. Innovator SP 500 | TrueShares Structured vs. Innovator Equity Power |
| EA Series vs. FT Vest Equity | EA Series vs. Northern Lights | EA Series vs. Dimensional International High | EA Series vs. Matthews China Discovery |
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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