Correlation Between EA Series and ETRACS Quarterly

Can any of the company-specific risk be diversified away by investing in both EA Series and ETRACS Quarterly 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 EA Series and ETRACS Quarterly into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EA Series Trust and ETRACS Quarterly Pay, you can compare the effects of market volatilities on EA Series and ETRACS Quarterly 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 EA Series with a short position of ETRACS Quarterly. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and ETRACS Quarterly.

Diversification Opportunities for EA Series and ETRACS Quarterly

0.59

Correlation Coefficient

EA Series  ETRACS Quarterly

Very weak diversification

The 3 months correlation between DRLL and ETRACS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and ETRACS Quarterly Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS Quarterly Pay and EA Series 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 EA Series Trust are associated (or correlated) with ETRACS Quarterly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS Quarterly Pay has no effect on the direction of EA Series i.e., EA Series and ETRACS Quarterly go up and down completely randomly.

Pair Corralation between EA Series and ETRACS Quarterly

Given the investment horizon of 90 days EA Series Trust is expected to under-perform the ETRACS Quarterly. But the etf apears to be less risky and, when comparing its historical volatility, EA Series Trust is 1.12 times less risky than ETRACS Quarterly. The etf trades about 0.0 of its potential returns per unit of risk. The ETRACS Quarterly Pay is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  5,909  in ETRACS Quarterly Pay on August 29, 2025 and sell it today you would lose (46.00) from holding ETRACS Quarterly Pay or give up 0.78% of portfolio value over 90 days.

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

EA Series Trust  vs.  ETRACS Quarterly Pay

EA Series Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days EA Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, EA Series is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

ETRACS Quarterly Pay

Risk-Adjusted Performance

Weakest

Over the last 90 days ETRACS Quarterly Pay has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ETRACS Quarterly is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with EA Series and ETRACS Quarterly

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

The idea behind EA Series Trust and ETRACS Quarterly Pay 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.