Correlation Between Dividend Performers and Listed Funds
Can any of the company-specific risk be diversified away by investing in both Dividend Performers 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 Dividend Performers and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dividend Performers ETF and Listed Funds Trust, you can compare the effects of market volatilities on Dividend Performers 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 Dividend Performers with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend Performers and Listed Funds.
Diversification Opportunities for Dividend Performers and Listed Funds
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dividend and Listed is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Dividend Performers ETF 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 Dividend Performers 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 Dividend Performers ETF 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 Dividend Performers i.e., Dividend Performers and Listed Funds go up and down completely randomly.
Pair Corralation between Dividend Performers and Listed Funds
Given the investment horizon of 90 days Dividend Performers ETF is expected to generate 1.4 times more return on investment than Listed Funds. However, Dividend Performers is 1.4 times more volatile than Listed Funds Trust. It trades about 0.08 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.06 per unit of risk. If you would invest 1,273 in Dividend Performers ETF on September 14, 2024 and sell it today you would earn a total of 758.00 from holding Dividend Performers ETF or generate 59.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dividend Performers ETF vs. Listed Funds Trust
Performance |
| Timeline |
| Dividend Performers ETF |
| Listed Funds Trust |
Dividend Performers and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dividend Performers and Listed Funds
The main advantage of trading using opposite Dividend Performers and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend Performers 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.| Dividend Performers vs. Global X SP | Dividend Performers vs. Amplify CWP Enhanced | Dividend Performers vs. NEOS ETF Trust | Dividend Performers vs. FT Cboe Vest |
| Listed Funds vs. Dividend Performers ETF | Listed Funds vs. John Hancock Preferred | Listed Funds vs. ETF Series Solutions | Listed Funds vs. American Century ETF |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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