Correlation Between Tidal Trust and Simplify Exchange

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

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

Diversification Opportunities for Tidal Trust and Simplify Exchange

0.0

Correlation Coefficient

Tidal Trust  Simplify Exchange

Pay attention - limited upside

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

Pair Corralation between Tidal Trust and Simplify Exchange

If you would invest  4,894  in Simplify Exchange Traded on May 27, 2025 and sell it today you would earn a total of  143.00  from holding Simplify Exchange Traded or generate 2.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Tidal Trust II  vs.  Simplify Exchange Traded

Tidal Trust II

Risk-Adjusted Performance

Weakest

Over the last 90 days Tidal Trust II has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Tidal Trust is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Simplify Exchange Traded

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Exchange Traded are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Simplify Exchange is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tidal Trust and Simplify Exchange

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

The idea behind Tidal Trust II and Simplify Exchange Traded 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.