Correlation Between Exchange Traded and Valued Advisers

Can any of the company-specific risk be diversified away by investing in both Exchange Traded and Valued Advisers 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 Exchange Traded and Valued Advisers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exchange Traded Concepts and Valued Advisers Trust, you can compare the effects of market volatilities on Exchange Traded and Valued Advisers 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 Exchange Traded with a short position of Valued Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and Valued Advisers.

Diversification Opportunities for Exchange Traded and Valued Advisers

-0.21

Correlation Coefficient

Exchange Traded  Valued Advisers

Very good diversification

The 3 months correlation between Exchange and Valued is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts and Valued Advisers Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valued Advisers Trust and Exchange Traded 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 Exchange Traded Concepts are associated (or correlated) with Valued Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valued Advisers Trust has no effect on the direction of Exchange Traded i.e., Exchange Traded and Valued Advisers go up and down completely randomly.

Pair Corralation between Exchange Traded and Valued Advisers

Given the investment horizon of 90 days Exchange Traded is expected to generate 1.19 times less return on investment than Valued Advisers. But when comparing it to its historical volatility, Exchange Traded Concepts is 1.15 times less risky than Valued Advisers. It trades about 0.12 of its potential returns per unit of risk. Valued Advisers Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,515  in Valued Advisers Trust on May 20, 2025 and sell it today you would earn a total of  38.00  from holding Valued Advisers Trust or generate 1.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.49%
Values	Daily Returns

Exchange Traded Concepts  vs.  Valued Advisers Trust

Exchange Traded Concepts

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Traded Concepts are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Exchange Traded is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Valued Advisers Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Valued Advisers Trust are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Valued Advisers is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Exchange Traded and Valued Advisers

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

The idea behind Exchange Traded Concepts and Valued Advisers Trust 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.