Correlation Between Ossiam Minimum and Gold Bullion

Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum and Gold Bullion 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 Minimum and Gold Bullion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ossiam Minimum Variance and Gold Bullion Securities, you can compare the effects of market volatilities on Ossiam Minimum and Gold Bullion 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 Minimum with a short position of Gold Bullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and Gold Bullion.

Diversification Opportunities for Ossiam Minimum and Gold Bullion

0.0

Correlation Coefficient

Ossiam Minimum  Gold Bullion

Pay attention - limited upside

The 3 months correlation between Ossiam and Gold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Minimum Variance and Gold Bullion Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Bullion Securities and Ossiam Minimum 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 Minimum Variance are associated (or correlated) with Gold Bullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Bullion Securities has no effect on the direction of Ossiam Minimum i.e., Ossiam Minimum and Gold Bullion go up and down completely randomly.

Pair Corralation between Ossiam Minimum and Gold Bullion

If you would invest  22,970  in Gold Bullion Securities on December 29, 2024 and sell it today you would earn a total of  3,148  from holding Gold Bullion Securities or generate 13.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ossiam Minimum Variance  vs.  Gold Bullion Securities

Ossiam Minimum Variance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ossiam Minimum Variance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ossiam Minimum is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Gold Bullion Securities

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gold Bullion Securities are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gold Bullion sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ossiam Minimum and Gold Bullion

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

The idea behind Ossiam Minimum Variance and Gold Bullion Securities 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.