Correlation Between AXS 2X and AXS TSLA
Can any of the company-specific risk be diversified away by investing in both AXS 2X and AXS TSLA 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 AXS TSLA 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 AXS TSLA Bear, you can compare the effects of market volatilities on AXS 2X and AXS TSLA 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 AXS TSLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS 2X and AXS TSLA.
Diversification Opportunities for AXS 2X and AXS TSLA
Pay attention - limited upside
The 3 months correlation between AXS and AXS is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AXS 2X Innovation and AXS TSLA Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXS TSLA Bear 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 AXS TSLA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXS TSLA Bear has no effect on the direction of AXS 2X i.e., AXS 2X and AXS TSLA go up and down completely randomly.
Pair Corralation between AXS 2X and AXS TSLA
Given the investment horizon of 90 days AXS 2X is expected to generate 151.98 times less return on investment than AXS TSLA. But when comparing it to its historical volatility, AXS 2X Innovation is 8.21 times less risky than AXS TSLA. It trades about 0.01 of its potential returns per unit of risk. AXS TSLA Bear is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,396 in AXS TSLA Bear on October 26, 2024 and sell it today you would earn a total of 1,018 from holding AXS TSLA Bear or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXS 2X Innovation vs. AXS TSLA Bear
Performance |
| Timeline |
| AXS 2X Innovation |
| AXS TSLA Bear |
AXS 2X and AXS TSLA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXS 2X and AXS TSLA
The main advantage of trading using opposite AXS 2X and AXS TSLA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS 2X position performs unexpectedly, AXS TSLA 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 TSLA will offset losses from the drop in AXS TSLA'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 |
| AXS TSLA vs. AXS 125X NVDA | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Direxion Shares ETF | AXS TSLA vs. Tuttle Capital Short |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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