Correlation Between Listed Funds and Dividend Performers
Can any of the company-specific risk be diversified away by investing in both Listed Funds and Dividend Performers 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 Listed Funds and Dividend Performers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Dividend Performers ETF, you can compare the effects of market volatilities on Listed Funds and Dividend Performers 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 Listed Funds with a short position of Dividend Performers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Dividend Performers.
Diversification Opportunities for Listed Funds and Dividend Performers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Listed and Dividend is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Dividend Performers ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend Performers ETF and Listed Funds 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 Listed Funds Trust are associated (or correlated) with Dividend Performers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend Performers ETF has no effect on the direction of Listed Funds i.e., Listed Funds and Dividend Performers go up and down completely randomly.
Pair Corralation between Listed Funds and Dividend Performers
Given the investment horizon of 90 days Listed Funds is expected to generate 1.86 times less return on investment than Dividend Performers. But when comparing it to its historical volatility, Listed Funds Trust is 1.4 times less risky than Dividend Performers. It trades about 0.06 of its potential returns per unit of risk. Dividend Performers ETF is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 |
Listed Funds Trust vs. Dividend Performers ETF
Performance |
| Timeline |
| Listed Funds Trust |
| Dividend Performers ETF |
Listed Funds and Dividend Performers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Dividend Performers
The main advantage of trading using opposite Listed Funds and Dividend Performers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, Dividend Performers 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 Dividend Performers will offset losses from the drop in Dividend Performers' long position.| Listed Funds vs. Dividend Performers ETF | Listed Funds vs. John Hancock Preferred | Listed Funds vs. ETF Series Solutions | Listed Funds vs. American Century ETF |
| Dividend Performers vs. Global X SP | Dividend Performers vs. Amplify CWP Enhanced | Dividend Performers vs. NEOS ETF Trust | Dividend Performers vs. FT Cboe Vest |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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