Correlation Between 21Shares Polkadot and Lyxor Commodities
Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and Lyxor Commodities 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 21Shares Polkadot and Lyxor Commodities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Polkadot ETP and Lyxor Commodities RefinitivCoreCommodity, you can compare the effects of market volatilities on 21Shares Polkadot and Lyxor Commodities 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 21Shares Polkadot with a short position of Lyxor Commodities. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and Lyxor Commodities.
Diversification Opportunities for 21Shares Polkadot and Lyxor Commodities
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 21Shares and Lyxor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and Lyxor Commodities RefinitivCor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Commodities and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with Lyxor Commodities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Commodities has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and Lyxor Commodities go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and Lyxor Commodities
Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to generate 5.41 times more return on investment than Lyxor Commodities. However, 21Shares Polkadot is 5.41 times more volatile than Lyxor Commodities RefinitivCoreCommodity. It trades about 0.04 of its potential returns per unit of risk. Lyxor Commodities RefinitivCoreCommodity is currently generating about 0.0 per unit of risk. If you would invest 337.00 in 21Shares Polkadot ETP on September 3, 2024 and sell it today you would earn a total of 47.00 from holding 21Shares Polkadot ETP or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. Lyxor Commodities RefinitivCor
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| Lyxor Commodities |
21Shares Polkadot and Lyxor Commodities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and Lyxor Commodities
The main advantage of trading using opposite 21Shares Polkadot and Lyxor Commodities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, Lyxor Commodities 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 Commodities will offset losses from the drop in Lyxor Commodities' long position.| 21Shares Polkadot vs. 21Shares Crypto Basket | 21Shares Polkadot vs. 21Shares Decentraland ETP | 21Shares Polkadot vs. 21Shares Uniswap ETP | 21Shares Polkadot vs. 21Shares Cosmos Staking |
| Lyxor Commodities vs. Lyxor MSCI Brazil | Lyxor Commodities vs. Multi Units France | Lyxor Commodities vs. Lyxor UCITS Stoxx | Lyxor Commodities vs. Multi Units France |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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