ESG Forecast




Price Forecast:




80% Confidence

Bearish<->Bullish




Bullish Case: ESG historical returns show potential for moderate gains over longer holding periods, coupled with cautious optimism in social media sentiment.




Bearish Case: Political and regulatory pressures, including anti-ESG legislation and claims of greenwashing, pose ongoing risks to ESG valuations.




Potential Outcomes:

1. Regulatory clarity boosts ESG adoption (35%).

2. Ongoing political pressures dampen growth (30%).

3. Sustained market volatility impacts prices negatively (20%).

4. Increased scrutiny of greenwashing practices (15%).




Trading Oracle: Consider long debit spreads (Helium Long Volatility) with a 12-24 month horizon, supported by heightened implied volatility in SPY options. Focus on companies with robust ESG adherence, balancing potential upside with put options for downside protection.



December 26, 2024


FlexShares Trust - FlexShares STOXX US ESG Select Index Forecast

ESG        FlexShares Trust - FlexShares STOXX US ESG Select Index











Correlated Assets

Assets that tend to move strongly with ESG



SPXL Forecast + Options Trading Strategies   SPXL  Direxion Daily S&P 500 Bull 3X Shares (0.99)


SPLG Forecast + Options Trading Strategies   SPLG  SPDR Series Trust - SPDR Portfolio S&P 500 (0.99)


SSO Forecast + Options Trading Strategies   SSO  ProShares Ultra S&P500 (0.99)


KKR Forecast + Options Trading Strategies   KKR  KKR (0.97)


ORCL Forecast + Options Trading Strategies   ORCL  Oracle (0.96)



Uncorrelated Assets

Assets with little price relationship to ESG



ARR Forecast + Options Trading Strategies   ARR  ARMOUR Residential REIT (-0.0)


SHEL Forecast + Options Trading Strategies   SHEL  Shell Plc - ADR (Representing) (0.0)


FANG Forecast + Options Trading Strategies   FANG  Diamondback Energy (-0.0)


SAVA Forecast + Options Trading Strategies   SAVA  Cassava Sciences (0.01)


DKNG Forecast + Options Trading Strategies   DKNG  DraftKings (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against ESG



APLS Forecast + Options Trading Strategies   APLS  Apellis Pharmaceuticals (-0.87)


JACK Forecast + Options Trading Strategies   JACK  Jack In The Box (-0.87)


XRAY Forecast + Options Trading Strategies   XRAY  DENTSPLY Sirona (-0.88)


SDS Forecast + Options Trading Strategies   SDS  ProShares UltraShort S&P500 (-0.99)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.99)









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