Correlation Between Ossiam Shiller and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Ossiam Shiller and NYSE Composite 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 Shiller and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam Shiller Barclays and NYSE Composite, you can compare the effects of market volatilities on Ossiam Shiller and NYSE Composite 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 Shiller with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Shiller and NYSE Composite.
Diversification Opportunities for Ossiam Shiller and NYSE Composite
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ossiam and NYSE is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Shiller Barclays and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Ossiam Shiller 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 Shiller Barclays are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Ossiam Shiller i.e., Ossiam Shiller and NYSE Composite go up and down completely randomly.
Pair Corralation between Ossiam Shiller and NYSE Composite
Assuming the 90 days trading horizon Ossiam Shiller Barclays is expected to generate 0.97 times more return on investment than NYSE Composite. However, Ossiam Shiller Barclays is 1.03 times less risky than NYSE Composite. It trades about -0.01 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.06 per unit of risk. If you would invest 51,140 in Ossiam Shiller Barclays on February 4, 2024 and sell it today you would lose (110.00) from holding Ossiam Shiller Barclays or give up 0.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Ossiam Shiller Barclays vs. NYSE Composite
Performance |
Timeline |
Ossiam Shiller and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Ossiam Shiller Barclays
Pair trading matchups for Ossiam Shiller
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Ossiam Shiller and NYSE Composite
The main advantage of trading using opposite Ossiam Shiller and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Shiller position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Ossiam Shiller vs. Amundi Index Solutions | Ossiam Shiller vs. Lyxor UCITS CAC | Ossiam Shiller vs. Amundi Index Solutions | Ossiam Shiller vs. Amundi Index Solutions |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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