Correlation Between STKd 100 and Strategy Shares

Can any of the company-specific risk be diversified away by investing in both STKd 100 and Strategy Shares 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 Strategy Shares 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 Strategy Shares, you can compare the effects of market volatilities on STKd 100 and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKd 100 and Strategy Shares.

Diversification Opportunities for STKd 100 and Strategy Shares

0.37

Correlation Coefficient

STKd 100  Strategy Shares

Weak diversification

The 3 months correlation between STKd and Strategy is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding STKd 100 percent and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares 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 Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of STKd 100 i.e., STKd 100 and Strategy Shares go up and down completely randomly.

Pair Corralation between STKd 100 and Strategy Shares

Given the investment horizon of 90 days STKd 100 percent is expected to generate 32.53 times more return on investment than Strategy Shares. However, STKd 100 is 32.53 times more volatile than Strategy Shares. It trades about 0.13 of its potential returns per unit of risk. Strategy Shares is currently generating about 0.27 per unit of risk. If you would invest  3,173  in STKd 100 percent on July 3, 2025 and sell it today you would earn a total of  979.00  from holding STKd 100 percent or generate 30.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

STKd 100 percent  vs.  Strategy Shares

STKd 100 percent

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in STKd 100 percent are ranked lower than 10 (%) 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.

Strategy Shares

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strategy Shares are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Strategy Shares is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with STKd 100 and Strategy Shares

The main advantage of trading using opposite STKd 100 and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKd 100 position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.

The idea behind STKd 100 percent and Strategy Shares 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.