Correlation Between IShares Automation and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both IShares Automation and Ossiam Lux 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 IShares Automation and Ossiam Lux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Automation Robotics and Ossiam Lux , you can compare the effects of market volatilities on IShares Automation and Ossiam Lux 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 IShares Automation with a short position of Ossiam Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Automation and Ossiam Lux.
Diversification Opportunities for IShares Automation and Ossiam Lux
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Ossiam is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding iShares Automation Robotics and Ossiam Lux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux and IShares Automation 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 iShares Automation Robotics are associated (or correlated) with Ossiam Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Lux has no effect on the direction of IShares Automation i.e., IShares Automation and Ossiam Lux go up and down completely randomly.
Pair Corralation between IShares Automation and Ossiam Lux
Assuming the 90 days trading horizon IShares Automation is expected to generate 1.17 times less return on investment than Ossiam Lux. In addition to that, IShares Automation is 1.46 times more volatile than Ossiam Lux . It trades about 0.24 of its total potential returns per unit of risk. Ossiam Lux is currently generating about 0.41 per unit of volatility. If you would invest 11,355,400 in Ossiam Lux on September 2, 2024 and sell it today you would earn a total of 848,900 from holding Ossiam Lux or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Automation Robotics vs. Ossiam Lux
Performance |
| Timeline |
| iShares Automation |
| Ossiam Lux |
IShares Automation and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Automation and Ossiam Lux
The main advantage of trading using opposite IShares Automation and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Automation position performs unexpectedly, Ossiam Lux 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 Lux will offset losses from the drop in Ossiam Lux's long position.| IShares Automation vs. Vanguard FTSE Developed | IShares Automation vs. Leverage Shares 2x | IShares Automation vs. Amundi Index Solutions | IShares Automation vs. Amundi Index Solutions |
| Ossiam Lux vs. Ossiam Shiller Barclays | Ossiam Lux vs. Ossiam Europe ESG | Ossiam Lux vs. Ossiam Minimum Variance | Ossiam Lux 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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