Correlation Between Tidal Trust and GrafTech International

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

Diversification Opportunities for Tidal Trust and GrafTech International

0.39

Correlation Coefficient

Tidal Trust  GrafTech International

Weak diversification

The 3 months correlation between Tidal and GrafTech is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International 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 GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Tidal Trust i.e., Tidal Trust and GrafTech International go up and down completely randomly.

Pair Corralation between Tidal Trust and GrafTech International

Given the investment horizon of 90 days Tidal Trust is expected to generate 2.17 times less return on investment than GrafTech International. But when comparing it to its historical volatility, Tidal Trust II is 7.08 times less risky than GrafTech International. It trades about 0.26 of its potential returns per unit of risk. GrafTech International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  100.00  in GrafTech International on May 21, 2025 and sell it today you would earn a total of  24.00  from holding GrafTech International or generate 24.0% return on investment over 90 days.

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

Tidal Trust II  vs.  GrafTech International

Tidal Trust II

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 20 (%) 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.

GrafTech International

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in GrafTech International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, GrafTech International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tidal Trust and GrafTech International

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

The idea behind Tidal Trust II and GrafTech International 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.