Correlation Between Tidal Trust and Pyxus International

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

Diversification Opportunities for Tidal Trust and Pyxus International

0.6

Correlation Coefficient

Tidal Trust  Pyxus International

Poor diversification

The 3 months correlation between Tidal and Pyxus is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Pyxus International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxus 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 Pyxus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxus International has no effect on the direction of Tidal Trust i.e., Tidal Trust and Pyxus International go up and down completely randomly.

Pair Corralation between Tidal Trust and Pyxus International

Given the investment horizon of 90 days Tidal Trust is expected to generate 1.39 times less return on investment than Pyxus International. But when comparing it to its historical volatility, Tidal Trust II is 2.46 times less risky than Pyxus International. It trades about 0.31 of its potential returns per unit of risk. Pyxus International is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  390.00  in Pyxus International on May 2, 2025 and sell it today you would earn a total of  135.00  from holding Pyxus International or generate 34.62% return on investment over 90 days.

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

Tidal Trust II  vs.  Pyxus 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 24 (%) 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.

Pyxus International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pyxus International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Pyxus International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tidal Trust and Pyxus International

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

The idea behind Tidal Trust II and Pyxus 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.