Correlation Between Elevation Series and EA Series
Can any of the company-specific risk be diversified away by investing in both Elevation Series 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 Elevation Series and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elevation Series Trust and EA Series Trust, you can compare the effects of market volatilities on Elevation Series 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 Elevation Series with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elevation Series and EA Series.
Diversification Opportunities for Elevation Series and EA Series
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elevation and DRLL is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Elevation Series 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 Elevation Series 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 Elevation Series 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 Elevation Series i.e., Elevation Series and EA Series go up and down completely randomly.
Pair Corralation between Elevation Series and EA Series
Given the investment horizon of 90 days Elevation Series Trust is expected to generate 0.64 times more return on investment than EA Series. However, Elevation Series Trust is 1.56 times less risky than EA Series. It trades about -0.1 of its potential returns per unit of risk. EA Series Trust is currently generating about -0.1 per unit of risk. If you would invest 5,492 in Elevation Series Trust on January 12, 2025 and sell it today you would lose (301.00) from holding Elevation Series Trust or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elevation Series Trust vs. EA Series Trust
Performance |
| Timeline |
| Elevation Series Trust |
| EA Series Trust |
Elevation Series and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elevation Series and EA Series
The main advantage of trading using opposite Elevation Series and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elevation Series 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.| Elevation Series vs. Vert Global Sustainable | Elevation Series vs. First Trust Exchange Traded | Elevation Series vs. VanEck Mortgage REIT | Elevation Series vs. Vanguard Global ex US |
| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |