Correlation Between KFA Mount and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both KFA Mount and Tidal 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 KFA Mount and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KFA Mount Lucas and Tidal Trust I, you can compare the effects of market volatilities on KFA Mount and Tidal 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 KFA Mount with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of KFA Mount and Tidal Trust.
Diversification Opportunities for KFA Mount and Tidal Trust
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KFA and Tidal is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding KFA Mount Lucas and Tidal Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust I and KFA Mount 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 KFA Mount Lucas are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust I has no effect on the direction of KFA Mount i.e., KFA Mount and Tidal Trust go up and down completely randomly.
Pair Corralation between KFA Mount and Tidal Trust
Given the investment horizon of 90 days KFA Mount is expected to generate 3.22 times less return on investment than Tidal Trust. In addition to that, KFA Mount is 1.67 times more volatile than Tidal Trust I. It trades about 0.04 of its total potential returns per unit of risk. Tidal Trust I is currently generating about 0.19 per unit of volatility. If you would invest 2,188 in Tidal Trust I on June 9, 2025 and sell it today you would earn a total of 109.00 from holding Tidal Trust I or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KFA Mount Lucas vs. Tidal Trust I
Performance |
| Timeline |
| KFA Mount Lucas |
| Tidal Trust I |
KFA Mount and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KFA Mount and Tidal Trust
The main advantage of trading using opposite KFA Mount and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KFA Mount position performs unexpectedly, Tidal 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| KFA Mount vs. iMGP DBi Managed | KFA Mount vs. Simplify Managed Futures | KFA Mount vs. Simplify Interest Rate | KFA Mount vs. AGFiQ Market Neutral |
| Tidal Trust vs. First Trust LongShort | Tidal Trust vs. ProShares Hedge Replication | Tidal Trust vs. IQ Merger Arbitrage | Tidal Trust vs. Cambria Global Value |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |