Correlation Between Cboe UK and Leverage Shares
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By analyzing existing cross correlation between Cboe UK Consumer and Leverage Shares 5x, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Leverage Shares.
Diversification Opportunities for Cboe UK and Leverage Shares
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Leverage is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Leverage Shares 5x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 5x and Cboe UK 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 Cboe UK Consumer 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 5x has no effect on the direction of Cboe UK i.e., Cboe UK and Leverage Shares go up and down completely randomly.
Pair Corralation between Cboe UK and Leverage Shares
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.18 times more return on investment than Leverage Shares. However, Cboe UK Consumer is 5.69 times less risky than Leverage Shares. It trades about 0.42 of its potential returns per unit of risk. Leverage Shares 5x is currently generating about 0.04 per unit of risk. If you would invest 2,980,061 in Cboe UK Consumer on August 31, 2024 and sell it today you would earn a total of 275,403 from holding Cboe UK Consumer or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cboe UK Consumer vs. Leverage Shares 5x
Performance |
| Timeline |
Cboe UK and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Leverage Shares 5x
Pair trading matchups for Leverage Shares
Pair Trading with Cboe UK and Leverage Shares
The main advantage of trading using opposite Cboe UK and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Lendinvest PLC | Cboe UK vs. Monster Beverage Corp | Cboe UK vs. Cembra Money Bank | Cboe UK vs. UNIQA Insurance Group |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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