Correlation Between Simplify Macro and Harbor ETF
Can any of the company-specific risk be diversified away by investing in both Simplify Macro and Harbor 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 Simplify Macro and Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simplify Macro Strategy and Harbor ETF Trust, you can compare the effects of market volatilities on Simplify Macro and Harbor 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 Simplify Macro with a short position of Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Macro and Harbor ETF.
Diversification Opportunities for Simplify Macro and Harbor ETF
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simplify and Harbor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Macro Strategy and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust and Simplify Macro 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 Simplify Macro Strategy are associated (or correlated) with Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Simplify Macro i.e., Simplify Macro and Harbor ETF go up and down completely randomly.
Pair Corralation between Simplify Macro and Harbor ETF
Considering the 90-day investment horizon Simplify Macro is expected to generate 1.16 times less return on investment than Harbor ETF. In addition to that, Simplify Macro is 1.6 times more volatile than Harbor ETF Trust. It trades about 0.09 of its total potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.17 per unit of volatility. If you would invest 2,296 in Harbor ETF Trust on September 12, 2024 and sell it today you would earn a total of 115.97 from holding Harbor ETF Trust or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simplify Macro Strategy vs. Harbor ETF Trust
Performance |
| Timeline |
| Simplify Macro Strategy |
| Harbor ETF Trust |
Simplify Macro and Harbor ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simplify Macro and Harbor ETF
The main advantage of trading using opposite Simplify Macro and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simplify Macro position performs unexpectedly, Harbor 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.| Simplify Macro vs. MBIA Inc | Simplify Macro vs. Lazard | Simplify Macro vs. Blackstone Group | Simplify Macro vs. MGIC Investment Corp |
| Harbor ETF vs. First Trust BuyWrite | Harbor ETF vs. First Trust Emerging | Harbor ETF vs. First Trust SSI | Harbor ETF vs. First Trust Alternative |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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