Correlation Between Schwab Fundamental and Tidal Trust

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

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

Diversification Opportunities for Schwab Fundamental and Tidal Trust

-0.33

Correlation Coefficient

Schwab Fundamental  Tidal Trust

Very good diversification

The 3 months correlation between Schwab and Tidal is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Fundamental Internation and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II and Schwab Fundamental 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 Schwab Fundamental International are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of Schwab Fundamental i.e., Schwab Fundamental and Tidal Trust go up and down completely randomly.

Pair Corralation between Schwab Fundamental and Tidal Trust

Given the investment horizon of 90 days Schwab Fundamental International is expected to generate 0.33 times more return on investment than Tidal Trust. However, Schwab Fundamental International is 3.0 times less risky than Tidal Trust. It trades about 0.25 of its potential returns per unit of risk. Tidal Trust II is currently generating about -0.01 per unit of risk. If you would invest  3,837  in Schwab Fundamental International on May 7, 2025 and sell it today you would earn a total of  417.00  from holding Schwab Fundamental International or generate 10.87% return on investment over 90 days.

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

Schwab Fundamental Internation  vs.  Tidal Trust II

Schwab Fundamental

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Schwab Fundamental International are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Schwab Fundamental may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Tidal Trust II

Risk-Adjusted Performance

Very Weak

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 newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Schwab Fundamental and Tidal Trust

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

The idea behind Schwab Fundamental International and Tidal Trust II 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.