Correlation Between Leverage Shares and Ossiam Shiller
Can any of the company-specific risk be diversified away by investing in both Leverage Shares 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 Leverage Shares and Ossiam Shiller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leverage Shares 2x and Ossiam Shiller Barclays, you can compare the effects of market volatilities on Leverage Shares 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 Leverage Shares with a short position of Ossiam Shiller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and Ossiam Shiller.
Diversification Opportunities for Leverage Shares and Ossiam Shiller
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Leverage and Ossiam is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 2x 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 Leverage Shares 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 Leverage Shares 2x 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 Leverage Shares i.e., Leverage Shares and Ossiam Shiller go up and down completely randomly.
Pair Corralation between Leverage Shares and Ossiam Shiller
Assuming the 90 days trading horizon Leverage Shares 2x is expected to generate 5.59 times more return on investment than Ossiam Shiller. However, Leverage Shares is 5.59 times more volatile than Ossiam Shiller Barclays. It trades about 0.05 of its potential returns per unit of risk. Ossiam Shiller Barclays is currently generating about 0.02 per unit of risk. If you would invest 459,700 in Leverage Shares 2x on August 26, 2024 and sell it today you would earn a total of 165,250 from holding Leverage Shares 2x or generate 35.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Leverage Shares 2x vs. Ossiam Shiller Barclays
Performance |
| Timeline |
| Leverage Shares 2x |
| Ossiam Shiller Barclays |
Leverage Shares and Ossiam Shiller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leverage Shares and Ossiam Shiller
The main advantage of trading using opposite Leverage Shares and Ossiam Shiller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares 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.| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. WisdomTree SP 500 | Leverage Shares vs. WisdomTree Silver 3x | Leverage Shares vs. GraniteShares FAANG ETC |
| Ossiam Shiller vs. Vanguard FTSE Developed | Ossiam Shiller vs. Leverage Shares 2x | Ossiam Shiller vs. Amundi Index Solutions | Ossiam Shiller vs. Amundi Index Solutions |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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