Correlation Between Series Portfolios and Simplify Exchange

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

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

Diversification Opportunities for Series Portfolios and Simplify Exchange

-0.2

Correlation Coefficient

Series Portfolios  Simplify Exchange

Good diversification

The 3 months correlation between Series and Simplify is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and Simplify Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Exchange Traded and Series Portfolios 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 Series Portfolios Trust are associated (or correlated) with Simplify Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Exchange Traded has no effect on the direction of Series Portfolios i.e., Series Portfolios and Simplify Exchange go up and down completely randomly.

Pair Corralation between Series Portfolios and Simplify Exchange

Given the investment horizon of 90 days Series Portfolios is expected to generate 9.08 times less return on investment than Simplify Exchange. In addition to that, Series Portfolios is 1.02 times more volatile than Simplify Exchange Traded. It trades about 0.01 of its total potential returns per unit of risk. Simplify Exchange Traded is currently generating about 0.05 per unit of volatility. If you would invest  1,224  in Simplify Exchange Traded on September 12, 2025 and sell it today you would earn a total of  138.00  from holding Simplify Exchange Traded or generate 11.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	19.43%
Values	Daily Returns

Series Portfolios Trust  vs.  Simplify Exchange Traded

Series Portfolios Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Series Portfolios Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Series Portfolios is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Simplify Exchange Traded

Risk-Adjusted Performance

Weakest

Over the last 90 days Simplify Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Simplify Exchange is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Series Portfolios and Simplify Exchange

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

The idea behind Series Portfolios Trust and Simplify Exchange Traded 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.