Correlation Between Leverage Shares and Leverage Shares
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By analyzing existing cross correlation between Leverage Shares 3x and Leverage Shares 1x, you can compare the effects of market volatilities on Leverage Shares and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and Leverage Shares.
Diversification Opportunities for Leverage Shares and Leverage Shares
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leverage and Leverage is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 3x and Leverage Shares 1x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 1x 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 3x are associated (or correlated) with Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 1x has no effect on the direction of Leverage Shares i.e., Leverage Shares and Leverage Shares go up and down completely randomly.
Pair Corralation between Leverage Shares and Leverage Shares
Assuming the 90 days trading horizon Leverage Shares 3x is expected to under-perform the Leverage Shares. But the etf apears to be less risky and, when comparing its historical volatility, Leverage Shares 3x is 1.06 times less risky than Leverage Shares. The etf trades about -0.1 of its potential returns per unit of risk. The Leverage Shares 1x is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Leverage Shares 1x on September 1, 2024 and sell it today you would earn a total of 22.00 from holding Leverage Shares 1x or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Leverage Shares 3x vs. Leverage Shares 1x
Performance |
| Timeline |
| Leverage Shares 3x |
| Leverage Shares 1x |
Leverage Shares and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leverage Shares and Leverage Shares
The main advantage of trading using opposite Leverage Shares and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC | Leverage Shares vs. NMI Holdings | Leverage Shares vs. SIVERS SEMICONDUCTORS AB |
| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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