Correlation Between Tidal ETF and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Tidal ETF and Barclays ETN 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 ETF and Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal ETF Trust and Barclays ETN FI, you can compare the effects of market volatilities on Tidal ETF and Barclays ETN 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 ETF with a short position of Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal ETF and Barclays ETN.
Diversification Opportunities for Tidal ETF and Barclays ETN
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tidal and Barclays is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Trust and Barclays ETN FI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN FI and Tidal ETF 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 ETF Trust are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN FI has no effect on the direction of Tidal ETF i.e., Tidal ETF and Barclays ETN go up and down completely randomly.
Pair Corralation between Tidal ETF and Barclays ETN
Given the investment horizon of 90 days Tidal ETF is expected to generate 1.1 times less return on investment than Barclays ETN. In addition to that, Tidal ETF is 1.03 times more volatile than Barclays ETN FI. It trades about 0.03 of its total potential returns per unit of risk. Barclays ETN FI is currently generating about 0.03 per unit of volatility. If you would invest 2,157 in Barclays ETN FI on September 3, 2024 and sell it today you would earn a total of 296.00 from holding Barclays ETN FI or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidal ETF Trust vs. Barclays ETN FI
Performance |
| Timeline |
| Tidal ETF Trust |
| Barclays ETN FI |
Tidal ETF and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal ETF and Barclays ETN
The main advantage of trading using opposite Tidal ETF and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal ETF position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| Tidal ETF vs. Freedom Day Dividend | Tidal ETF vs. iShares MSCI China | Tidal ETF vs. SmartETFs Dividend Builder | Tidal ETF vs. Listed Funds Trust |
| Barclays ETN vs. Freedom Day Dividend | Barclays ETN vs. iShares MSCI China | Barclays ETN vs. SmartETFs Dividend Builder | Barclays ETN vs. Tidal ETF Trust |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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