Correlation Between Simplify Macro and Halo Collective

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

By analyzing existing cross correlation between Simplify Macro Strategy and Halo Collective, you can compare the effects of market volatilities on Simplify Macro and Halo Collective 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 Macro with a short position of Halo Collective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplify Macro and Halo Collective.

Diversification Opportunities for Simplify Macro and Halo Collective

0.0

Correlation Coefficient

Simplify Macro  Halo Collective

Pay attention - limited upside

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

Pair Corralation between Simplify Macro and Halo Collective

If you would invest  2,160  in Simplify Macro Strategy on January 31, 2025 and sell it today you would earn a total of  76.00  from holding Simplify Macro Strategy or generate 3.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Simplify Macro Strategy  vs.  Halo Collective

Simplify Macro Strategy

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Macro Strategy are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Simplify Macro is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Halo Collective

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halo Collective has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Halo Collective is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Simplify Macro and Halo Collective

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

The idea behind Simplify Macro Strategy and Halo Collective 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 Transaction History module to view history of all your transactions and understand their impact on performance.