Correlation Between IShares and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both IShares and Tidal Trust 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 IShares and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares and Tidal Trust II, you can compare the effects of market volatilities on IShares and Tidal Trust 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 IShares with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and Tidal Trust.
Diversification Opportunities for IShares and Tidal Trust
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Tidal is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding IShares and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II and IShares 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 IShares are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of IShares i.e., IShares and Tidal Trust go up and down completely randomly.
Pair Corralation between IShares and Tidal Trust
If you would invest 3,484 in Tidal Trust II on August 28, 2024 and sell it today you would earn a total of 520.00 from holding Tidal Trust II or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
IShares vs. Tidal Trust II
Performance |
| Timeline |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tidal Trust II |
IShares and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares and Tidal Trust
The main advantage of trading using opposite IShares and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| IShares vs. First Trust Nasdaq | IShares vs. Global X Robotics | IShares vs. Robo Global Robotics | IShares vs. iShares Cybersecurity and |
| Tidal Trust vs. Invesco DWA Utilities | Tidal Trust vs. Invesco Dynamic Large | Tidal Trust vs. Invesco Dynamic Large | Tidal Trust vs. HUMANA INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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