| CTA Etf | | | USD 27.88 0.14 0.50% |
The current 90-days correlation between Simplify Exchange Traded and KFA Mount Lucas is 0.31 (i.e., Weak diversification). The correlation of Simplify Exchange is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Simplify Exchange Correlation With Market
Good diversification
The correlation between Simplify Exchange Traded and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Simplify Exchange Traded and DJI in the same portfolio, assuming nothing else is changed.
Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Simplify Exchange Traded. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in estimate.
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations | | High negative correlations |
Simplify Exchange Constituents Risk-Adjusted IndicatorsThere is a big difference between Simplify Etf performing well and Simplify Exchange ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Simplify Exchange's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.