Correlation Between TrueShares Structured and Listed Funds
Can any of the company-specific risk be diversified away by investing in both TrueShares Structured 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 TrueShares Structured and Listed Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrueShares Structured Outcome and Listed Funds Trust, you can compare the effects of market volatilities on TrueShares Structured 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 TrueShares Structured with a short position of Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueShares Structured and Listed Funds.
Diversification Opportunities for TrueShares Structured and Listed Funds
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between TrueShares and Listed is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Structured Outcome 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 TrueShares Structured 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 TrueShares Structured Outcome 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 TrueShares Structured i.e., TrueShares Structured and Listed Funds go up and down completely randomly.
Pair Corralation between TrueShares Structured and Listed Funds
Given the investment horizon of 90 days TrueShares Structured Outcome is expected to generate 0.95 times more return on investment than Listed Funds. However, TrueShares Structured Outcome is 1.05 times less risky than Listed Funds. It trades about 0.11 of its potential returns per unit of risk. Listed Funds Trust is currently generating about 0.1 per unit of risk. If you would invest 2,922 in TrueShares Structured Outcome on September 3, 2024 and sell it today you would earn a total of 1,119 from holding TrueShares Structured Outcome or generate 38.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrueShares Structured Outcome vs. Listed Funds Trust
Performance |
| Timeline |
| TrueShares Structured |
| Listed Funds Trust |
TrueShares Structured and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrueShares Structured and Listed Funds
The main advantage of trading using opposite TrueShares Structured and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueShares Structured 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.| TrueShares Structured vs. Innovator ETFs Trust | TrueShares Structured vs. First Trust Cboe | TrueShares Structured vs. FT Cboe Vest | TrueShares Structured vs. Innovator SP 500 |
| Listed Funds vs. Innovator ETFs Trust | Listed Funds vs. First Trust Cboe | Listed Funds vs. FT Cboe Vest | Listed Funds vs. Innovator SP 500 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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