Correlation Between FundX ETF and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both FundX ETF and Tidal Trust 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 FundX ETF and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FundX ETF and Tidal Trust III, you can compare the effects of market volatilities on FundX ETF and Tidal Trust 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 FundX ETF with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of FundX ETF and Tidal Trust.
Diversification Opportunities for FundX ETF and Tidal Trust
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between FundX and Tidal is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FundX ETF and Tidal Trust III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust III and FundX ETF 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 FundX ETF are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust III has no effect on the direction of FundX ETF i.e., FundX ETF and Tidal Trust go up and down completely randomly.
Pair Corralation between FundX ETF and Tidal Trust
Given the investment horizon of 90 days FundX ETF is expected to generate 1.03 times more return on investment than Tidal Trust. However, FundX ETF is 1.03 times more volatile than Tidal Trust III. It trades about 0.11 of its potential returns per unit of risk. Tidal Trust III is currently generating about -0.09 per unit of risk. If you would invest 7,165 in FundX ETF on November 3, 2024 and sell it today you would earn a total of 211.00 from holding FundX ETF or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FundX ETF vs. Tidal Trust III
Performance |
| Timeline |
| FundX ETF |
| Tidal Trust III |
FundX ETF and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FundX ETF and Tidal Trust
The main advantage of trading using opposite FundX ETF and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FundX ETF position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| FundX ETF vs. FT Vest Equity | FundX ETF vs. Northern Lights | FundX ETF vs. Dimensional International High | FundX ETF vs. First Trust Exchange Traded |
| Tidal Trust vs. FT Vest Equity | Tidal Trust vs. Northern Lights | Tidal Trust vs. Dimensional International High | Tidal Trust vs. First Trust Exchange Traded |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |