Correlation Between Listed Funds and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both Listed Funds and OneAscent Core 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 OneAscent Core 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 OneAscent Core Plus, you can compare the effects of market volatilities on Listed Funds and OneAscent Core 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 OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and OneAscent Core.
Diversification Opportunities for Listed Funds and OneAscent Core
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Listed and OneAscent is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus 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 OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of Listed Funds i.e., Listed Funds and OneAscent Core go up and down completely randomly.
Pair Corralation between Listed Funds and OneAscent Core
Considering the 90-day investment horizon Listed Funds is expected to generate 1.15 times less return on investment than OneAscent Core. But when comparing it to its historical volatility, Listed Funds Trust is 1.05 times less risky than OneAscent Core. It trades about 0.25 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,266 in OneAscent Core Plus on September 13, 2024 and sell it today you would earn a total of 28.00 from holding OneAscent Core Plus or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. OneAscent Core Plus
Performance |
| Timeline |
| Listed Funds Trust |
| OneAscent Core Plus |
Listed Funds and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and OneAscent Core
The main advantage of trading using opposite Listed Funds and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds position performs unexpectedly, OneAscent Core 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 OneAscent Core will offset losses from the drop in OneAscent Core's long position.| Listed Funds vs. Overlay Shares Hedged | Listed Funds vs. Overlay Shares Core | Listed Funds vs. Overlay Shares Municipal | Listed Funds vs. Overlay Shares Large |
| OneAscent Core vs. Listed Funds Trust | OneAscent Core vs. PGIM ETF Trust | OneAscent Core vs. SSGA Active Trust | OneAscent Core vs. JPMorgan Inflation Managed |
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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