Correlation Between Amundi Index and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi Index 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 Amundi Index and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Lyxor UCITS Daily, you can compare the effects of market volatilities on Amundi Index 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 Amundi Index with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Lyxor UCITS.
Diversification Opportunities for Amundi Index and Lyxor UCITS
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amundi and Lyxor is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Lyxor UCITS Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Daily and Amundi Index 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 Amundi Index Solutions 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 Daily has no effect on the direction of Amundi Index i.e., Amundi Index and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi Index and Lyxor UCITS
Assuming the 90 days trading horizon Amundi Index is expected to generate 1.19 times less return on investment than Lyxor UCITS. But when comparing it to its historical volatility, Amundi Index Solutions is 2.01 times less risky than Lyxor UCITS. It trades about 0.04 of its potential returns per unit of risk. Lyxor UCITS Daily is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,989 in Lyxor UCITS Daily on September 3, 2024 and sell it today you would earn a total of 432.00 from holding Lyxor UCITS Daily or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Lyxor UCITS Daily
Performance |
| Timeline |
| Amundi Index Solutions |
| Lyxor UCITS Daily |
Amundi Index and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Lyxor UCITS
The main advantage of trading using opposite Amundi Index and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index 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.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Granite 3x LVMH |
| Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Ossiam Minimum Variance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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