Correlation Between Ossiam ESG and Ossiam FTSE
Can any of the company-specific risk be diversified away by investing in both Ossiam ESG and Ossiam FTSE 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 ESG and Ossiam FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam ESG Low and Ossiam FTSE 100, you can compare the effects of market volatilities on Ossiam ESG and Ossiam FTSE 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 ESG with a short position of Ossiam FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam ESG and Ossiam FTSE.
Diversification Opportunities for Ossiam ESG and Ossiam FTSE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ossiam and Ossiam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam ESG Low and Ossiam FTSE 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam FTSE 100 and Ossiam ESG 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 ESG Low are associated (or correlated) with Ossiam FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam FTSE 100 has no effect on the direction of Ossiam ESG i.e., Ossiam ESG and Ossiam FTSE go up and down completely randomly.
Pair Corralation between Ossiam ESG and Ossiam FTSE
If you would invest 1,384,700 in Ossiam ESG Low on August 31, 2024 and sell it today you would earn a total of 191,100 from holding Ossiam ESG Low or generate 13.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ossiam ESG Low vs. Ossiam FTSE 100
Performance |
| Timeline |
| Ossiam ESG Low |
| Ossiam FTSE 100 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ossiam ESG and Ossiam FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam ESG and Ossiam FTSE
The main advantage of trading using opposite Ossiam ESG and Ossiam FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam ESG position performs unexpectedly, Ossiam FTSE 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 FTSE will offset losses from the drop in Ossiam FTSE's long position.| Ossiam ESG vs. Ossiam Shiller Barclays | Ossiam ESG vs. Ossiam Europe ESG | Ossiam ESG vs. Ossiam Minimum Variance | Ossiam ESG vs. Ossiam Shiller Barclays |
| Ossiam FTSE vs. Ossiam Shiller Barclays | Ossiam FTSE vs. Ossiam Europe ESG | Ossiam FTSE vs. Ossiam Minimum Variance | Ossiam FTSE 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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