Correlation Between Tidal Trust and Macquarie ETF

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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

TidalMacquarieDiversified AwayTidalMacquarieDiversified Away100%
-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Tidal and Macquarie is -0.08. 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 2.73 times more return on investment than Macquarie ETF. However, Tidal Trust is 2.73 times more volatile than Macquarie ETF Trust. It trades about 0.01 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.03 per unit of risk. If you would invest  1,171  in Tidal Trust II on November 25, 2024 and sell it today you would lose (8.00) from holding Tidal Trust II or give up 0.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Tidal Trust II  vs.  Macquarie ETF Trust

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-5051015
JavaScript chart by amCharts 3.21.15DIPS PWER
       Timeline  
Tidal Trust II 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Tidal Trust II has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tidal Trust is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1111.51212.51313.5
Macquarie ETF Trust 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Macquarie ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Etf's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2626.52727.52828.52929.5

Tidal Trust and Macquarie ETF Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.75-3.56-2.36-1.17-0.01991.132.33.484.655.82 0.050.100.150.20
JavaScript chart by amCharts 3.21.15DIPS PWER
       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.
The idea behind Tidal Trust II and Macquarie ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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