Correlation Between OneAscent Core and Listed Funds
Can any of the company-specific risk be diversified away by investing in both OneAscent Core 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 OneAscent Core and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneAscent Core Plus and Listed Funds Trust, you can compare the effects of market volatilities on OneAscent Core 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 OneAscent Core with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneAscent Core and Listed Funds.
Diversification Opportunities for OneAscent Core and Listed Funds
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OneAscent and Listed is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding OneAscent Core Plus 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 OneAscent Core 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 OneAscent Core Plus 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 OneAscent Core i.e., OneAscent Core and Listed Funds go up and down completely randomly.
Pair Corralation between OneAscent Core and Listed Funds
Given the investment horizon of 90 days OneAscent Core Plus is expected to generate 0.91 times more return on investment than Listed Funds. However, OneAscent Core Plus is 1.1 times less risky than Listed Funds. It trades about -0.05 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 2,270 in OneAscent Core Plus on October 24, 2024 and sell it today you would lose (18.00) from holding OneAscent Core Plus or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.33% |
| Values | Daily Returns |
OneAscent Core Plus vs. Listed Funds Trust
Performance |
| Timeline |
| OneAscent Core Plus |
| Listed Funds Trust |
OneAscent Core and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneAscent Core and Listed Funds
The main advantage of trading using opposite OneAscent Core and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneAscent Core 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.| OneAscent Core vs. Listed Funds Trust | OneAscent Core vs. PGIM ETF Trust | OneAscent Core vs. SSGA Active Trust | OneAscent Core vs. JPMorgan Inflation Managed |
| Listed Funds vs. Overlay Shares Hedged | Listed Funds vs. Overlay Shares Core | Listed Funds vs. Overlay Shares Municipal | Listed Funds vs. Overlay Shares Large |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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