Correlation Between Mid Cap and Tidal Trust

Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mid Cap Growth Profund and Tidal Trust I, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Tidal Trust.

Diversification Opportunities for Mid Cap and Tidal Trust

0.77

Correlation Coefficient

Mid Cap  Tidal Trust

Poor diversification

The 3 months correlation between Mid and Tidal is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth Profund 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 Mid Cap 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 Mid Cap Growth Profund 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 Mid Cap i.e., Mid Cap and Tidal Trust go up and down completely randomly.

Pair Corralation between Mid Cap and Tidal Trust

Assuming the 90 days horizon Mid Cap is expected to generate 1.26 times less return on investment than Tidal Trust. In addition to that, Mid Cap is 1.25 times more volatile than Tidal Trust I. It trades about 0.03 of its total potential returns per unit of risk. Tidal Trust I is currently generating about 0.05 per unit of volatility. If you would invest  2,508  in Tidal Trust I on September 17, 2025 and sell it today you would earn a total of  66.00  from holding Tidal Trust I or generate 2.63% return on investment over 90 days.

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

Mid Cap Growth Profund  vs.  Tidal Trust I

Mid Cap Growth

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mid Cap Growth Profund are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Mid Cap is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Tidal Trust I

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust I are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Tidal Trust is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mid Cap and Tidal Trust

The main advantage of trading using opposite Mid Cap and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.

The idea behind Mid Cap Growth Profund and Tidal Trust I 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.