Correlation Between Series Portfolios and Motley Fool

Can any of the company-specific risk be diversified away by investing in both Series Portfolios and Motley Fool 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 Series Portfolios and Motley Fool into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Series Portfolios Trust and Motley Fool 100, you can compare the effects of market volatilities on Series Portfolios and Motley Fool 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 Series Portfolios with a short position of Motley Fool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and Motley Fool.

Diversification Opportunities for Series Portfolios and Motley Fool

0.0

Correlation Coefficient

Series Portfolios  Motley Fool

Pay attention - limited upside

The 3 months correlation between Series and Motley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and Motley Fool 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motley Fool 100 and Series Portfolios 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 Series Portfolios Trust are associated (or correlated) with Motley Fool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motley Fool 100 has no effect on the direction of Series Portfolios i.e., Series Portfolios and Motley Fool go up and down completely randomly.

Pair Corralation between Series Portfolios and Motley Fool

If you would invest  5,720  in Motley Fool 100 on May 6, 2025 and sell it today you would earn a total of  887.00  from holding Motley Fool 100 or generate 15.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Series Portfolios Trust  vs.  Motley Fool 100

Series Portfolios Trust

Risk-Adjusted Performance

Solid

Over the last 90 days Series Portfolios Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Series Portfolios is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Motley Fool 100

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Motley Fool 100 are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Motley Fool exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Series Portfolios and Motley Fool

The main advantage of trading using opposite Series Portfolios and Motley Fool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios position performs unexpectedly, Motley Fool 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 Motley Fool will offset losses from the drop in Motley Fool's long position.

The idea behind Series Portfolios Trust and Motley Fool 100 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.