Correlation Between Tidal Trust and Value Exchange

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

Diversification Opportunities for Tidal Trust and Value Exchange

-0.69

Correlation Coefficient

Tidal Trust  Value Exchange

Excellent diversification

The 3 months correlation between Tidal and Value is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Value Exchange International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Exchange Inter 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 Value Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Exchange Inter has no effect on the direction of Tidal Trust i.e., Tidal Trust and Value Exchange go up and down completely randomly.

Pair Corralation between Tidal Trust and Value Exchange

If you would invest  538.00  in Tidal Trust II on June 29, 2025 and sell it today you would earn a total of  5.00  from holding Tidal Trust II or generate 0.93% return on investment over 90 days.

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

Tidal Trust II  vs.  Value Exchange International

Tidal Trust II

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Tidal Trust may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Value Exchange Inter

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Exchange International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in October 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Tidal Trust and Value Exchange

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

The idea behind Tidal Trust II and Value Exchange 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.