Correlation Between Simplify Exchange and AltShares Event

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

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

Diversification Opportunities for Simplify Exchange and AltShares Event

0.92

Correlation Coefficient

Simplify Exchange  AltShares Event

Almost no diversification

The 3 months correlation between Simplify and AltShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Exchange Traded and AltShares Event Driven ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltShares Event Driven and Simplify Exchange 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 Simplify Exchange Traded are associated (or correlated) with AltShares Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltShares Event Driven has no effect on the direction of Simplify Exchange i.e., Simplify Exchange and AltShares Event go up and down completely randomly.

Pair Corralation between Simplify Exchange and AltShares Event

Considering the 90-day investment horizon Simplify Exchange Traded is expected to under-perform the AltShares Event. In addition to that, Simplify Exchange is 22.93 times more volatile than AltShares Event Driven ETF. It trades about -0.1 of its total potential returns per unit of risk. AltShares Event Driven ETF is currently generating about 0.29 per unit of volatility. If you would invest  1,092  in AltShares Event Driven ETF on April 25, 2025 and sell it today you would earn a total of  78.00  from holding AltShares Event Driven ETF or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Simplify Exchange Traded  vs.  AltShares Event Driven ETF

Simplify Exchange Traded

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simplify Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

AltShares Event Driven

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AltShares Event Driven ETF are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AltShares Event may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Simplify Exchange and AltShares Event

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

The idea behind Simplify Exchange Traded and AltShares Event Driven ETF 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 CEOs Directory module to screen CEOs from public companies around the world.