Correlation Between Tidal Trust and Stringer Growth

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

Diversification Opportunities for Tidal Trust and Stringer Growth

0.92

Correlation Coefficient

Tidal Trust  Stringer Growth

Almost no diversification

The 3 months correlation between Tidal and Stringer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth 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 Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Tidal Trust i.e., Tidal Trust and Stringer Growth go up and down completely randomly.

Pair Corralation between Tidal Trust and Stringer Growth

Given the investment horizon of 90 days Tidal Trust II is expected to generate 2.5 times more return on investment than Stringer Growth. However, Tidal Trust is 2.5 times more volatile than Stringer Growth Fund. It trades about 0.17 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.18 per unit of risk. If you would invest  509.00  in Tidal Trust II on May 27, 2025 and sell it today you would earn a total of  65.00  from holding Tidal Trust II or generate 12.77% return on investment over 90 days.

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

Tidal Trust II  vs.  Stringer Growth Fund

Tidal Trust II

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Tidal Trust may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Stringer Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stringer Growth Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Stringer Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tidal Trust and Stringer Growth

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

The idea behind Tidal Trust II and Stringer Growth Fund 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.