Correlation Between WBI BullBear and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both WBI BullBear and Strategy Shares 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 WBI BullBear and Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WBI BullBear Value and Strategy Shares NewfoundReSolve, you can compare the effects of market volatilities on WBI BullBear and Strategy Shares 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 WBI BullBear with a short position of Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of WBI BullBear and Strategy Shares.
Diversification Opportunities for WBI BullBear and Strategy Shares
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WBI and Strategy is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding WBI BullBear Value and Strategy Shares NewfoundReSolv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares Newf and WBI BullBear 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 WBI BullBear Value are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares Newf has no effect on the direction of WBI BullBear i.e., WBI BullBear and Strategy Shares go up and down completely randomly.
Pair Corralation between WBI BullBear and Strategy Shares
Given the investment horizon of 90 days WBI BullBear Value is expected to generate 1.16 times more return on investment than Strategy Shares. However, WBI BullBear is 1.16 times more volatile than Strategy Shares NewfoundReSolve. It trades about 0.08 of its potential returns per unit of risk. Strategy Shares NewfoundReSolve is currently generating about 0.09 per unit of risk. If you would invest 2,961 in WBI BullBear Value on August 17, 2025 and sell it today you would earn a total of 126.00 from holding WBI BullBear Value or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WBI BullBear Value vs. Strategy Shares NewfoundReSolv
Performance |
| Timeline |
| WBI BullBear Value |
| Strategy Shares Newf |
WBI BullBear and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WBI BullBear and Strategy Shares
The main advantage of trading using opposite WBI BullBear and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WBI BullBear position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| WBI BullBear vs. WBI BullBear Yield | WBI BullBear vs. WBI BullBear Quality | WBI BullBear vs. JP Morgan Exchange Traded | WBI BullBear vs. First Trust SMID |
| Strategy Shares vs. Global X Funds | Strategy Shares vs. Tidal ETF Trust | Strategy Shares vs. FundX Aggressive ETF | Strategy Shares vs. Collaborative Investment Series |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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