Correlation Between United States and Tidal ETF

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

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

Diversification Opportunities for United States and Tidal ETF

0.36

Correlation Coefficient

United States  Tidal ETF

Weak diversification

The 3 months correlation between United and Tidal is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding United States Gasoline and Tidal ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal ETF Trust and United States 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 United States Gasoline are associated (or correlated) with Tidal ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal ETF Trust has no effect on the direction of United States i.e., United States and Tidal ETF go up and down completely randomly.

Pair Corralation between United States and Tidal ETF

Considering the 90-day investment horizon United States Gasoline is expected to under-perform the Tidal ETF. In addition to that, United States is 3.93 times more volatile than Tidal ETF Trust. It trades about -0.01 of its total potential returns per unit of risk. Tidal ETF Trust is currently generating about 0.16 per unit of volatility. If you would invest  1,961  in Tidal ETF Trust on May 7, 2025 and sell it today you would earn a total of  24.00  from holding Tidal ETF Trust or generate 1.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

United States Gasoline  vs.  Tidal ETF Trust

United States Gasoline

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in United States Gasoline are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting technical and fundamental indicators, United States may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Tidal ETF Trust

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal ETF Trust are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Tidal ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with United States and Tidal ETF

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

The idea behind United States Gasoline and Tidal ETF Trust 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.