Correlation Between Lyxor Ibex and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Lyxor Ibex and Lyxor UCITS 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 Lyxor Ibex and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Ibex 35 and Lyxor UCITS MSCI, you can compare the effects of market volatilities on Lyxor Ibex and Lyxor UCITS 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 Lyxor Ibex with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Ibex and Lyxor UCITS.
Diversification Opportunities for Lyxor Ibex and Lyxor UCITS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Ibex 35 and Lyxor UCITS MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS MSCI and Lyxor Ibex 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 Lyxor Ibex 35 are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS MSCI has no effect on the direction of Lyxor Ibex i.e., Lyxor Ibex and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Lyxor Ibex and Lyxor UCITS
If you would invest 91.00 in Lyxor Ibex 35 on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Lyxor Ibex 35 or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor Ibex 35 vs. Lyxor UCITS MSCI
Performance |
| Timeline |
| Lyxor Ibex 35 |
| Lyxor UCITS MSCI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lyxor Ibex and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Ibex and Lyxor UCITS
The main advantage of trading using opposite Lyxor Ibex and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Ibex position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.The idea behind Lyxor Ibex 35 and Lyxor UCITS MSCI 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.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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