Correlation Between ETFS Enhanced and ETFS Physical
Can any of the company-specific risk be diversified away by investing in both ETFS Enhanced and ETFS Physical 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 ETFS Enhanced and ETFS Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Enhanced USD and ETFS Physical Silver, you can compare the effects of market volatilities on ETFS Enhanced and ETFS Physical 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 ETFS Enhanced with a short position of ETFS Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Enhanced and ETFS Physical.
Diversification Opportunities for ETFS Enhanced and ETFS Physical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETFS and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Enhanced USD and ETFS Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Physical Silver and ETFS Enhanced 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 ETFS Enhanced USD are associated (or correlated) with ETFS Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Physical Silver has no effect on the direction of ETFS Enhanced i.e., ETFS Enhanced and ETFS Physical go up and down completely randomly.
Pair Corralation between ETFS Enhanced and ETFS Physical
If you would invest (100.00) in ETFS Enhanced USD on September 1, 2024 and sell it today you would earn a total of 100.00 from holding ETFS Enhanced USD or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ETFS Enhanced USD vs. ETFS Physical Silver
Performance |
| Timeline |
| ETFS Enhanced USD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ETFS Physical Silver |
ETFS Enhanced and ETFS Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Enhanced and ETFS Physical
The main advantage of trading using opposite ETFS Enhanced and ETFS Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Enhanced position performs unexpectedly, ETFS Physical 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 ETFS Physical will offset losses from the drop in ETFS Physical's long position.| ETFS Enhanced vs. ETFS Battery Tech | ETFS Enhanced vs. ETFS Ultra Long | ETFS Enhanced vs. ETFS Ultra Short | ETFS Enhanced vs. ETFS FANG ETF |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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