Correlation Between AXS 2X and LJIM
Can any of the company-specific risk be diversified away by investing in both AXS 2X and LJIM 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 AXS 2X and LJIM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXS 2X Innovation and LJIM, you can compare the effects of market volatilities on AXS 2X and LJIM 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 AXS 2X with a short position of LJIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS 2X and LJIM.
Diversification Opportunities for AXS 2X and LJIM
Pay attention - limited upside
The 3 months correlation between AXS and LJIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AXS 2X Innovation and LJIM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LJIM and AXS 2X 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 AXS 2X Innovation are associated (or correlated) with LJIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LJIM has no effect on the direction of AXS 2X i.e., AXS 2X and LJIM go up and down completely randomly.
Pair Corralation between AXS 2X and LJIM
If you would invest 4,670 in AXS 2X Innovation on November 9, 2024 and sell it today you would earn a total of 551.00 from holding AXS 2X Innovation or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AXS 2X Innovation vs. LJIM
Performance |
| Timeline |
| AXS 2X Innovation |
| LJIM |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
AXS 2X and LJIM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXS 2X and LJIM
The main advantage of trading using opposite AXS 2X and LJIM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS 2X position performs unexpectedly, LJIM 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 LJIM will offset losses from the drop in LJIM's long position.| AXS 2X vs. Tuttle Capital Short | AXS 2X vs. Direxion Shares ETF | AXS 2X vs. AXS TSLA Bear | AXS 2X vs. 2x Long VIX |
| LJIM vs. Unusual Whales Subversive | LJIM vs. Unusual Whales Subversive | LJIM vs. Tuttle Capital Short | LJIM vs. AXS TSLA Bear |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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