Correlation Between Webull Incentive and Technology Fund

Can any of the company-specific risk be diversified away by investing in both Webull Incentive and Technology Fund 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 Webull Incentive and Technology Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Webull Incentive and Technology Fund Investor, you can compare the effects of market volatilities on Webull Incentive and Technology Fund 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 Webull Incentive with a short position of Technology Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webull Incentive and Technology Fund.

Diversification Opportunities for Webull Incentive and Technology Fund

-0.29

Correlation Coefficient

Webull Incentive  Technology Fund

Very good diversification

The 3 months correlation between Webull and Technology is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Webull Incentive and Technology Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technology Fund Investor and Webull Incentive 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 Webull Incentive are associated (or correlated) with Technology Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technology Fund Investor has no effect on the direction of Webull Incentive i.e., Webull Incentive and Technology Fund go up and down completely randomly.

Pair Corralation between Webull Incentive and Technology Fund

Assuming the 90 days horizon Webull Incentive is expected to generate 35.93 times more return on investment than Technology Fund. However, Webull Incentive is 35.93 times more volatile than Technology Fund Investor. It trades about 0.11 of its potential returns per unit of risk. Technology Fund Investor is currently generating about 0.32 per unit of risk. If you would invest  259.00  in Webull Incentive on May 1, 2025 and sell it today you would lose (72.00) from holding Webull Incentive or give up 27.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	67.74%
Values	Daily Returns

Webull Incentive  vs.  Technology Fund Investor

Webull Incentive

Risk-Adjusted Performance

OK

Over the last 90 days Webull Incentive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak essential indicators, Webull Incentive showed solid returns over the last few months and may actually be approaching a breakup point.

Technology Fund Investor

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Technology Fund Investor are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Technology Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Webull Incentive and Technology Fund

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

The idea behind Webull Incentive and Technology Fund Investor 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.