Correlation Between AXS 2X and Themes Global

Can any of the company-specific risk be diversified away by investing in both AXS 2X and Themes Global 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 Themes Global 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 Themes Global Systemically, you can compare the effects of market volatilities on AXS 2X and Themes Global 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 Themes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXS 2X and Themes Global.

Diversification Opportunities for AXS 2X and Themes Global

0.67

Correlation Coefficient

AXS 2X  Themes Global

Poor diversification

The 3 months correlation between AXS and Themes is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AXS 2X Innovation and Themes Global Systemically in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Global System 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 Themes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Global System has no effect on the direction of AXS 2X i.e., AXS 2X and Themes Global go up and down completely randomly.

Pair Corralation between AXS 2X and Themes Global

Given the investment horizon of 90 days AXS 2X Innovation is expected to generate 5.55 times more return on investment than Themes Global. However, AXS 2X is 5.55 times more volatile than Themes Global Systemically. It trades about 0.28 of its potential returns per unit of risk. Themes Global Systemically is currently generating about 0.3 per unit of risk. If you would invest  3,047  in AXS 2X Innovation on May 3, 2025 and sell it today you would earn a total of  3,401  from holding AXS 2X Innovation or generate 111.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

AXS 2X Innovation  vs.  Themes Global Systemically

AXS 2X Innovation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXS 2X Innovation are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, AXS 2X disclosed solid returns over the last few months and may actually be approaching a breakup point.

Themes Global System

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Themes Global Systemically are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Themes Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXS 2X and Themes Global

The main advantage of trading using opposite AXS 2X and Themes Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXS 2X position performs unexpectedly, Themes Global 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 Themes Global will offset losses from the drop in Themes Global's long position.

The idea behind AXS 2X Innovation and Themes Global Systemically pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.