Correlation Between Tidal Trust and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and Macquarie ETF 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 Macquarie ETF 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 Macquarie ETF Trust, you can compare the effects of market volatilities on Tidal Trust and Macquarie ETF 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and Macquarie ETF.
Diversification Opportunities for Tidal Trust and Macquarie ETF
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tidal and Macquarie is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of Tidal Trust i.e., Tidal Trust and Macquarie ETF go up and down completely randomly.
Pair Corralation between Tidal Trust and Macquarie ETF
Given the investment horizon of 90 days Tidal Trust II is expected to generate 4.54 times more return on investment than Macquarie ETF. However, Tidal Trust is 4.54 times more volatile than Macquarie ETF Trust. It trades about 0.06 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.07 per unit of risk. If you would invest 1,179 in Tidal Trust II on November 9, 2024 and sell it today you would earn a total of 39.00 from holding Tidal Trust II or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidal Trust II vs. Macquarie ETF Trust
Performance |
| Timeline |
| Tidal Trust II |
| Macquarie ETF Trust |
Tidal Trust and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and Macquarie ETF
The main advantage of trading using opposite Tidal Trust and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| Tidal Trust vs. Freedom Day Dividend | Tidal Trust vs. Franklin Templeton ETF | Tidal Trust vs. iShares MSCI China | Tidal Trust vs. Tidal Trust II |
| Macquarie ETF vs. Freedom Day Dividend | Macquarie ETF vs. Franklin Templeton ETF | Macquarie ETF vs. iShares MSCI China | Macquarie ETF vs. Tidal Trust II |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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