Correlation Between Ossiam Europe and Ossiam ESG
Can any of the company-specific risk be diversified away by investing in both Ossiam Europe and Ossiam ESG 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 Ossiam Europe and Ossiam ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam Europe ESG and Ossiam ESG Low, you can compare the effects of market volatilities on Ossiam Europe and Ossiam ESG 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 Ossiam Europe with a short position of Ossiam ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Europe and Ossiam ESG.
Diversification Opportunities for Ossiam Europe and Ossiam ESG
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ossiam and Ossiam is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Europe ESG and Ossiam ESG Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam ESG Low and Ossiam Europe 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 Ossiam Europe ESG are associated (or correlated) with Ossiam ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam ESG Low has no effect on the direction of Ossiam Europe i.e., Ossiam Europe and Ossiam ESG go up and down completely randomly.
Pair Corralation between Ossiam Europe and Ossiam ESG
Assuming the 90 days trading horizon Ossiam Europe ESG is expected to under-perform the Ossiam ESG. But the etf apears to be less risky and, when comparing its historical volatility, Ossiam Europe ESG is 1.11 times less risky than Ossiam ESG. The etf trades about -0.07 of its potential returns per unit of risk. The Ossiam ESG Low is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,446,300 in Ossiam ESG Low on September 2, 2024 and sell it today you would earn a total of 120,600 from holding Ossiam ESG Low or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ossiam Europe ESG vs. Ossiam ESG Low
Performance |
| Timeline |
| Ossiam Europe ESG |
| Ossiam ESG Low |
Ossiam Europe and Ossiam ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam Europe and Ossiam ESG
The main advantage of trading using opposite Ossiam Europe and Ossiam ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Europe position performs unexpectedly, Ossiam ESG 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 ESG will offset losses from the drop in Ossiam ESG's long position.| Ossiam Europe vs. Leverage Shares 2x | Ossiam Europe vs. Amundi Index Solutions | Ossiam Europe vs. Amundi Index Solutions | Ossiam Europe vs. Albion Venture Capital |
| Ossiam ESG vs. Ossiam Shiller Barclays | Ossiam ESG vs. Ossiam Europe ESG | Ossiam ESG vs. Ossiam Minimum Variance | Ossiam ESG vs. Ossiam Shiller Barclays |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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