Correlation Between Simplify Exchange and Avantis Core

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

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

Diversification Opportunities for Simplify Exchange and Avantis Core

0.0

Correlation Coefficient

Simplify Exchange  Avantis Core

Pay attention - limited upside

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

Pair Corralation between Simplify Exchange and Avantis Core

If you would invest  4,041  in Avantis Core Fixed on May 17, 2025 and sell it today you would earn a total of  120.00  from holding Avantis Core Fixed or generate 2.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Simplify Exchange Traded  vs.  Avantis Core Fixed

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. Despite somewhat strong basic indicators, Simplify Exchange is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Avantis Core Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Avantis Core Fixed are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Avantis Core 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 Exchange and Avantis Core

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

The idea behind Simplify Exchange Traded and Avantis Core Fixed 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.