Correlation Between DSJA and Listed Funds
Can any of the company-specific risk be diversified away by investing in both DSJA and Listed Funds 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 DSJA and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and Listed Funds Trust, you can compare the effects of market volatilities on DSJA and Listed Funds 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 DSJA with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and Listed Funds.
Diversification Opportunities for DSJA and Listed Funds
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DSJA and Listed is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust and DSJA 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 DSJA are associated (or correlated) with Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of DSJA i.e., DSJA and Listed Funds go up and down completely randomly.
Pair Corralation between DSJA and Listed Funds
If you would invest 3,784 in Listed Funds Trust on September 1, 2024 and sell it today you would earn a total of 440.00 from holding Listed Funds Trust or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
DSJA vs. Listed Funds Trust
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Listed Funds Trust |
DSJA and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and Listed Funds
The main advantage of trading using opposite DSJA and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, Listed Funds 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 Listed Funds will offset losses from the drop in Listed Funds' long position.The idea behind DSJA and Listed Funds 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.| Listed Funds vs. Trueshares Structured Outcome | Listed Funds vs. TrueShares Structured Outcome | Listed Funds vs. TrueShares Structured Outcome | Listed Funds vs. TrueShares Structured Outcome |
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.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |