Correlation Between Ossiam Minimum and SPDR Barclays

Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum and SPDR Barclays 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 SPDR Barclays 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 SPDR Barclays Cap, you can compare the effects of market volatilities on Ossiam Minimum and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and SPDR Barclays.

Diversification Opportunities for Ossiam Minimum and SPDR Barclays

0.0

Correlation Coefficient

Ossiam Minimum  SPDR Barclays

Pay attention - limited upside

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

Pair Corralation between Ossiam Minimum and SPDR Barclays

If you would invest  9,162  in SPDR Barclays Cap on December 1, 2024 and sell it today you would earn a total of  162.00  from holding SPDR Barclays Cap or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	72.58%
Values	Daily Returns

Ossiam Minimum Variance  vs.  SPDR Barclays Cap

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.

SPDR Barclays Cap

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Barclays Cap are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SPDR Barclays is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ossiam Minimum and SPDR Barclays

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

The idea behind Ossiam Minimum Variance and SPDR Barclays Cap 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..