Correlation Between BBVA Telecomunicacion and Lyxor 1
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By analyzing existing cross correlation between BBVA Telecomunicaciones PP and Lyxor 1 , you can compare the effects of market volatilities on BBVA Telecomunicacion and Lyxor 1 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 BBVA Telecomunicacion with a short position of Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBVA Telecomunicacion and Lyxor 1.
Diversification Opportunities for BBVA Telecomunicacion and Lyxor 1
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BBVA and Lyxor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BBVA Telecomunicaciones PP and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 and BBVA Telecomunicacion 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 BBVA Telecomunicaciones PP are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of BBVA Telecomunicacion i.e., BBVA Telecomunicacion and Lyxor 1 go up and down completely randomly.
Pair Corralation between BBVA Telecomunicacion and Lyxor 1
Assuming the 90 days trading horizon BBVA Telecomunicacion is expected to generate 1.18 times less return on investment than Lyxor 1. In addition to that, BBVA Telecomunicacion is 1.54 times more volatile than Lyxor 1 . It trades about 0.09 of its total potential returns per unit of risk. Lyxor 1 is currently generating about 0.17 per unit of volatility. If you would invest 2,403 in Lyxor 1 on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Lyxor 1 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BBVA Telecomunicaciones PP vs. Lyxor 1
Performance |
| Timeline |
| BBVA Telecomunicaciones |
| Lyxor 1 |
BBVA Telecomunicacion and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBVA Telecomunicacion and Lyxor 1
The main advantage of trading using opposite BBVA Telecomunicacion and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBVA Telecomunicacion position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1's long position.| BBVA Telecomunicacion vs. Swedbank Robur Corporate | BBVA Telecomunicacion vs. Caixabank Seleccin Tendencias | BBVA Telecomunicacion vs. JPMIF Bond Fund | BBVA Telecomunicacion vs. Esfera Robotics R |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor 1 TecDAX | Lyxor 1 vs. Lyxor UCITS EuroMTS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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