Correlation Between Ossiam FTSE and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both Ossiam FTSE 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 Ossiam FTSE and Ossiam Lux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam FTSE 100 and Ossiam Lux , you can compare the effects of market volatilities on Ossiam FTSE 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 Ossiam FTSE with a short position of Ossiam Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam FTSE and Ossiam Lux.
Diversification Opportunities for Ossiam FTSE and Ossiam Lux
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 FTSE 100 and Ossiam Lux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux and Ossiam FTSE 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 FTSE 100 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 Ossiam FTSE i.e., Ossiam FTSE and Ossiam Lux go up and down completely randomly.
Pair Corralation between Ossiam FTSE and Ossiam Lux
If you would invest (100.00) in Ossiam Lux on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Ossiam Lux or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ossiam FTSE 100 vs. Ossiam Lux
Performance |
| Timeline |
| Ossiam FTSE 100 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ossiam Lux |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ossiam FTSE and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam FTSE and Ossiam Lux
The main advantage of trading using opposite Ossiam FTSE and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam FTSE 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.| Ossiam FTSE vs. Ossiam Shiller Barclays | Ossiam FTSE vs. Ossiam Europe ESG | Ossiam FTSE vs. Ossiam Minimum Variance | Ossiam FTSE vs. Ossiam Shiller Barclays |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |