Correlation Between LJIM and AXS 2X
Can any of the company-specific risk be diversified away by investing in both LJIM and AXS 2X 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 LJIM and AXS 2X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LJIM and AXS 2X Innovation, you can compare the effects of market volatilities on LJIM and AXS 2X 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 LJIM with a short position of AXS 2X. Check out your portfolio center. Please also check ongoing floating volatility patterns of LJIM and AXS 2X.
Diversification Opportunities for LJIM and AXS 2X
Pay attention - limited upside
The 3 months correlation between LJIM and AXS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LJIM and AXS 2X Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXS 2X Innovation and LJIM 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 LJIM are associated (or correlated) with AXS 2X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXS 2X Innovation has no effect on the direction of LJIM i.e., LJIM and AXS 2X go up and down completely randomly.
Pair Corralation between LJIM and AXS 2X
If you would invest 6,257 in AXS 2X Innovation on November 9, 2024 and sell it today you would lose (1,036) from holding AXS 2X Innovation or give up 16.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LJIM vs. AXS 2X Innovation
Performance |
| Timeline |
| LJIM |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AXS 2X Innovation |
LJIM and AXS 2X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LJIM and AXS 2X
The main advantage of trading using opposite LJIM and AXS 2X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LJIM position performs unexpectedly, AXS 2X 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 AXS 2X will offset losses from the drop in AXS 2X's long position.| LJIM vs. Unusual Whales Subversive | LJIM vs. Unusual Whales Subversive | LJIM vs. Tuttle Capital Short | LJIM vs. AXS TSLA Bear |
| AXS 2X vs. Tuttle Capital Short | AXS 2X vs. Direxion Shares ETF | AXS 2X vs. AXS TSLA Bear | AXS 2X vs. 2x Long VIX |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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