Correlation Between TrueShares Structured and Cabana Target

Can any of the company-specific risk be diversified away by investing in both TrueShares Structured and Cabana Target 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 TrueShares Structured and Cabana Target into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TrueShares Structured Outcome and Cabana Target Leading, you can compare the effects of market volatilities on TrueShares Structured and Cabana Target 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 TrueShares Structured with a short position of Cabana Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueShares Structured and Cabana Target.

Diversification Opportunities for TrueShares Structured and Cabana Target

0.89

Correlation Coefficient

TrueShares Structured  Cabana Target

Very poor diversification

The 3 months correlation between TrueShares and Cabana is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Structured Outcome and Cabana Target Leading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabana Target Leading and TrueShares Structured 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 TrueShares Structured Outcome are associated (or correlated) with Cabana Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabana Target Leading has no effect on the direction of TrueShares Structured i.e., TrueShares Structured and Cabana Target go up and down completely randomly.

Pair Corralation between TrueShares Structured and Cabana Target

Given the investment horizon of 90 days TrueShares Structured Outcome is expected to generate 0.81 times more return on investment than Cabana Target. However, TrueShares Structured Outcome is 1.24 times less risky than Cabana Target. It trades about 0.06 of its potential returns per unit of risk. Cabana Target Leading is currently generating about 0.04 per unit of risk. If you would invest  4,150  in TrueShares Structured Outcome on October 7, 2025 and sell it today you would earn a total of  93.50  from holding TrueShares Structured Outcome or generate 2.25% return on investment over 90 days.

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

TrueShares Structured Outcome  vs.  Cabana Target Leading

TrueShares Structured

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in TrueShares Structured Outcome are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, TrueShares Structured is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cabana Target Leading

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cabana Target Leading are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cabana Target is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with TrueShares Structured and Cabana Target

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

The idea behind TrueShares Structured Outcome and Cabana Target Leading 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.