Correlation Between Ossiam Minimum and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum and SPDR Barclays 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 Minimum and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam Minimum Variance and SPDR Barclays Euro, you can compare the effects of market volatilities on Ossiam Minimum and SPDR Barclays 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 Minimum with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and SPDR Barclays.
Diversification Opportunities for Ossiam Minimum and SPDR Barclays
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ossiam and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Minimum Variance and SPDR Barclays Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Euro and Ossiam Minimum 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 Minimum Variance are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Euro has no effect on the direction of Ossiam Minimum i.e., Ossiam Minimum and SPDR Barclays go up and down completely randomly.
Pair Corralation between Ossiam Minimum and SPDR Barclays
Assuming the 90 days trading horizon Ossiam Minimum Variance is expected to under-perform the SPDR Barclays. But the etf apears to be less risky and, when comparing its historical volatility, Ossiam Minimum Variance is 6.41 times less risky than SPDR Barclays. The etf trades about -0.03 of its potential returns per unit of risk. The SPDR Barclays Euro is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,935 in SPDR Barclays Euro on August 27, 2024 and sell it today you would earn a total of 447.00 from holding SPDR Barclays Euro or generate 9.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Ossiam Minimum Variance vs. SPDR Barclays Euro
Performance |
| Timeline |
| Ossiam Minimum Variance |
| SPDR Barclays Euro |
Ossiam Minimum and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam Minimum and SPDR Barclays
The main advantage of trading using opposite Ossiam Minimum and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Minimum position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Ossiam Minimum vs. Ossiam Lux Ossiam | Ossiam Minimum vs. Ossiam Europe ESG | Ossiam Minimum vs. Ossiam Lux | Ossiam Minimum vs. Ossiam Shiller Barclays |
| SPDR Barclays vs. Amundi ETF Govies | SPDR Barclays vs. iShares STOXX Europe | SPDR Barclays vs. iShares Global Infrastructure | SPDR Barclays vs. SPDR MSCI World |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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