Correlation Between Main International and Zacks Trust
Can any of the company-specific risk be diversified away by investing in both Main International and Zacks Trust 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 Main International and Zacks Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Main International ETF and Zacks Trust, you can compare the effects of market volatilities on Main International and Zacks Trust 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 Main International with a short position of Zacks Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Main International and Zacks Trust.
Diversification Opportunities for Main International and Zacks Trust
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Main and Zacks is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Main International ETF and Zacks Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zacks Trust and Main International 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 Main International ETF are associated (or correlated) with Zacks Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zacks Trust has no effect on the direction of Main International i.e., Main International and Zacks Trust go up and down completely randomly.
Pair Corralation between Main International and Zacks Trust
Given the investment horizon of 90 days Main International is expected to generate 1.15 times less return on investment than Zacks Trust. But when comparing it to its historical volatility, Main International ETF is 1.44 times less risky than Zacks Trust. It trades about 0.01 of its potential returns per unit of risk. Zacks Trust is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,730 in Zacks Trust on August 30, 2025 and sell it today you would earn a total of 1.00 from holding Zacks Trust or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Main International ETF vs. Zacks Trust
Performance |
| Timeline |
| Main International ETF |
| Zacks Trust |
Main International and Zacks Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Main International and Zacks Trust
The main advantage of trading using opposite Main International and Zacks Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Main International position performs unexpectedly, Zacks Trust 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 Zacks Trust will offset losses from the drop in Zacks Trust's long position.| Main International vs. FT Vest Equity | Main International vs. Northern Lights | Main International vs. Diamond Hill Funds | Main International vs. Dimensional International High |
| Zacks Trust vs. FT Vest Equity | Zacks Trust vs. Northern Lights | Zacks Trust vs. Diamond Hill Funds | Zacks Trust vs. Dimensional International High |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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