Correlation Between LS 1x and Ossiam Shiller
Can any of the company-specific risk be diversified away by investing in both LS 1x and Ossiam Shiller 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 LS 1x and Ossiam Shiller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LS 1x Amazon and Ossiam Shiller Barclays, you can compare the effects of market volatilities on LS 1x and Ossiam Shiller 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 LS 1x with a short position of Ossiam Shiller. Check out your portfolio center. Please also check ongoing floating volatility patterns of LS 1x and Ossiam Shiller.
Diversification Opportunities for LS 1x and Ossiam Shiller
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1AMZ and Ossiam is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding LS 1x Amazon and Ossiam Shiller Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Shiller Barclays and LS 1x 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 LS 1x Amazon are associated (or correlated) with Ossiam Shiller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Shiller Barclays has no effect on the direction of LS 1x i.e., LS 1x and Ossiam Shiller go up and down completely randomly.
Pair Corralation between LS 1x and Ossiam Shiller
Assuming the 90 days trading horizon LS 1x Amazon is expected to generate 2.74 times more return on investment than Ossiam Shiller. However, LS 1x is 2.74 times more volatile than Ossiam Shiller Barclays. It trades about 0.12 of its potential returns per unit of risk. Ossiam Shiller Barclays is currently generating about -0.25 per unit of risk. If you would invest 579.00 in LS 1x Amazon on August 30, 2024 and sell it today you would earn a total of 50.00 from holding LS 1x Amazon or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LS 1x Amazon vs. Ossiam Shiller Barclays
Performance |
| Timeline |
| LS 1x Amazon |
| Ossiam Shiller Barclays |
LS 1x and Ossiam Shiller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LS 1x and Ossiam Shiller
The main advantage of trading using opposite LS 1x and Ossiam Shiller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LS 1x position performs unexpectedly, Ossiam Shiller 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 Ossiam Shiller will offset losses from the drop in Ossiam Shiller's long position.| LS 1x vs. iShares MSCI Japan | LS 1x vs. Amundi EUR High | LS 1x vs. iShares JP Morgan | LS 1x vs. Xtrackers MSCI |
| Ossiam Shiller vs. GraniteShares 3x Short | Ossiam Shiller vs. WisdomTree Natural Gas | Ossiam Shiller vs. Leverage Shares 3x | Ossiam Shiller vs. WisdomTree Natural Gas |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |