Correlation Between STKd 100 and Simplify Exchange

Can any of the company-specific risk be diversified away by investing in both STKd 100 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 STKd 100 and Simplify Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between STKd 100 percent and Simplify Exchange Traded, you can compare the effects of market volatilities on STKd 100 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 STKd 100 with a short position of Simplify Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKd 100 and Simplify Exchange.

Diversification Opportunities for STKd 100 and Simplify Exchange

-0.53

Correlation Coefficient

STKd 100  Simplify Exchange

Excellent diversification

The 3 months correlation between STKd and Simplify is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding STKd 100 percent 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 STKd 100 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 STKd 100 percent 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 STKd 100 i.e., STKd 100 and Simplify Exchange go up and down completely randomly.

Pair Corralation between STKd 100 and Simplify Exchange

Given the investment horizon of 90 days STKd 100 percent is expected to generate 8.74 times more return on investment than Simplify Exchange. However, STKd 100 is 8.74 times more volatile than Simplify Exchange Traded. It trades about 0.29 of its potential returns per unit of risk. Simplify Exchange Traded is currently generating about -0.03 per unit of risk. If you would invest  2,351  in STKd 100 percent on May 16, 2025 and sell it today you would earn a total of  2,148  from holding STKd 100 percent or generate 91.37% return on investment over 90 days.

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

STKd 100 percent  vs.  Simplify Exchange Traded

STKd 100 percent

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in STKd 100 percent are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, STKd 100 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Simplify Exchange Traded

Risk-Adjusted Performance

Weakest

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 comparatively stable fundamental indicators, Simplify Exchange is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with STKd 100 and Simplify Exchange

The main advantage of trading using opposite STKd 100 and Simplify Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKd 100 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 STKd 100 percent 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.