Correlation Between Themes Natural and Unlimited HFMF
Can any of the company-specific risk be diversified away by investing in both Themes Natural and Unlimited HFMF 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 Themes Natural and Unlimited HFMF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Themes Natural Monopoly and Unlimited HFMF Managed, you can compare the effects of market volatilities on Themes Natural and Unlimited HFMF 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 Themes Natural with a short position of Unlimited HFMF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Themes Natural and Unlimited HFMF.
Diversification Opportunities for Themes Natural and Unlimited HFMF
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Themes and Unlimited is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Themes Natural Monopoly and Unlimited HFMF Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unlimited HFMF Managed and Themes Natural 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 Themes Natural Monopoly are associated (or correlated) with Unlimited HFMF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unlimited HFMF Managed has no effect on the direction of Themes Natural i.e., Themes Natural and Unlimited HFMF go up and down completely randomly.
Pair Corralation between Themes Natural and Unlimited HFMF
Given the investment horizon of 90 days Themes Natural is expected to generate 205.56 times less return on investment than Unlimited HFMF. But when comparing it to its historical volatility, Themes Natural Monopoly is 107.45 times less risky than Unlimited HFMF. It trades about 0.05 of its potential returns per unit of risk. Unlimited HFMF Managed is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Unlimited HFMF Managed on September 1, 2025 and sell it today you would earn a total of 2,112 from holding Unlimited HFMF Managed or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.94% |
| Values | Daily Returns |
Themes Natural Monopoly vs. Unlimited HFMF Managed
Performance |
| Timeline |
| Themes Natural Monopoly |
| Unlimited HFMF Managed |
Themes Natural and Unlimited HFMF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Themes Natural and Unlimited HFMF
The main advantage of trading using opposite Themes Natural and Unlimited HFMF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themes Natural position performs unexpectedly, Unlimited HFMF 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 Unlimited HFMF will offset losses from the drop in Unlimited HFMF's long position.| Themes Natural vs. Strategy Shares | Themes Natural vs. Freedom Day Dividend | Themes Natural vs. Franklin Templeton ETF | Themes Natural vs. iShares MSCI China |
| Unlimited HFMF vs. Strategy Shares | Unlimited HFMF vs. Freedom Day Dividend | Unlimited HFMF vs. Franklin Templeton ETF | Unlimited HFMF vs. iShares MSCI China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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