Correlation Between Tidal Trust and Cell Source

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

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

Diversification Opportunities for Tidal Trust and Cell Source

0.59

Correlation Coefficient

Tidal Trust  Cell Source

Very weak diversification

The 3 months correlation between Tidal and Cell is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Cell Source in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cell Source and Tidal Trust 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 Tidal Trust II are associated (or correlated) with Cell Source. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cell Source has no effect on the direction of Tidal Trust i.e., Tidal Trust and Cell Source go up and down completely randomly.

Pair Corralation between Tidal Trust and Cell Source

Given the investment horizon of 90 days Tidal Trust is expected to generate 2.32 times less return on investment than Cell Source. But when comparing it to its historical volatility, Tidal Trust II is 8.9 times less risky than Cell Source. It trades about 0.36 of its potential returns per unit of risk. Cell Source is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Cell Source on April 30, 2025 and sell it today you would earn a total of  10.00  from holding Cell Source or generate 33.33% return on investment over 90 days.

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

Tidal Trust II  vs.  Cell Source

Tidal Trust II

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tidal Trust showed solid returns over the last few months and may actually be approaching a breakup point.

Cell Source

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cell Source are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Cell Source unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tidal Trust and Cell Source

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

The idea behind Tidal Trust II and Cell Source 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.