Correlation Between Listed Funds and EA Series
Can any of the company-specific risk be diversified away by investing in both Listed Funds and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on Listed Funds and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and EA Series.
Diversification Opportunities for Listed Funds and EA Series
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Listed and STRV is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Listed Funds i.e., Listed Funds and EA Series go up and down completely randomly.
Pair Corralation between Listed Funds and EA Series
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 1.34 times more return on investment than EA Series. However, Listed Funds is 1.34 times more volatile than EA Series Trust. It trades about 0.49 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.17 per unit of risk. If you would invest 2,959 in Listed Funds Trust on August 26, 2024 and sell it today you would earn a total of 390.00 from holding Listed Funds Trust or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. EA Series Trust
Performance |
| Timeline |
| Listed Funds Trust |
| EA Series Trust |
Listed Funds and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and EA Series
The main advantage of trading using opposite Listed Funds and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Listed Funds vs. EA Series Trust | Listed Funds vs. EA Series Trust | Listed Funds vs. Rumble Inc | Listed Funds vs. EA Series Trust |
| EA Series vs. Morningstar Unconstrained Allocation | EA Series vs. High Yield Municipal Fund | EA Series vs. Via Renewables | EA Series vs. Knife River |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |