Correlation Between EGSHARES BLUE and Themes Airlines
Can any of the company-specific risk be diversified away by investing in both EGSHARES BLUE and Themes Airlines 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 EGSHARES BLUE and Themes Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EGSHARES BLUE CHIP and Themes Airlines ETF, you can compare the effects of market volatilities on EGSHARES BLUE and Themes Airlines 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 EGSHARES BLUE with a short position of Themes Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGSHARES BLUE and Themes Airlines.
Diversification Opportunities for EGSHARES BLUE and Themes Airlines
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EGSHARES and Themes is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding EGSHARES BLUE CHIP and Themes Airlines ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Airlines ETF and EGSHARES BLUE 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 EGSHARES BLUE CHIP are associated (or correlated) with Themes Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Airlines ETF has no effect on the direction of EGSHARES BLUE i.e., EGSHARES BLUE and Themes Airlines go up and down completely randomly.
Pair Corralation between EGSHARES BLUE and Themes Airlines
Given the investment horizon of 90 days EGSHARES BLUE CHIP is expected to generate 0.68 times more return on investment than Themes Airlines. However, EGSHARES BLUE CHIP is 1.48 times less risky than Themes Airlines. It trades about 0.11 of its potential returns per unit of risk. Themes Airlines ETF is currently generating about 0.06 per unit of risk. If you would invest 2,524 in EGSHARES BLUE CHIP on September 3, 2024 and sell it today you would earn a total of 966.00 from holding EGSHARES BLUE CHIP or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 70.37% |
| Values | Daily Returns |
EGSHARES BLUE CHIP vs. Themes Airlines ETF
Performance |
| Timeline |
| EGSHARES BLUE CHIP |
| Themes Airlines ETF |
EGSHARES BLUE and Themes Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGSHARES BLUE and Themes Airlines
The main advantage of trading using opposite EGSHARES BLUE and Themes Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGSHARES BLUE position performs unexpectedly, Themes Airlines 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 Themes Airlines will offset losses from the drop in Themes Airlines' long position.| EGSHARES BLUE vs. Vanguard Growth Index | EGSHARES BLUE vs. iShares Russell 1000 | EGSHARES BLUE vs. iShares Core SP | EGSHARES BLUE vs. Vanguard Mega Cap |
| Themes Airlines vs. First Trust Indxx | Themes Airlines vs. Direxion Daily Industrials | Themes Airlines vs. NATO | Themes Airlines vs. FlexShares STOXX Global |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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