Correlation Between Amundi Index and Lyxor Index
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Lyxor Index 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 Index 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 Index Fund, you can compare the effects of market volatilities on Amundi Index and Lyxor Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Lyxor Index.
Diversification Opportunities for Amundi Index and Lyxor Index
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Lyxor is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Lyxor Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Index Fund 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Index Fund has no effect on the direction of Amundi Index i.e., Amundi Index and Lyxor Index go up and down completely randomly.
Pair Corralation between Amundi Index and Lyxor Index
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 1.34 times more return on investment than Lyxor Index. However, Amundi Index is 1.34 times more volatile than Lyxor Index Fund. It trades about 0.13 of its potential returns per unit of risk. Lyxor Index Fund is currently generating about 0.06 per unit of risk. If you would invest 16,468 in Amundi Index Solutions on August 26, 2024 and sell it today you would earn a total of 6,187 from holding Amundi Index Solutions or generate 37.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Lyxor Index Fund
Performance |
| Timeline |
| Amundi Index Solutions |
| Lyxor Index Fund |
Amundi Index and Lyxor Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Lyxor Index
The main advantage of trading using opposite Amundi Index and Lyxor Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Lyxor Index 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 Index will offset losses from the drop in Lyxor Index's long position.| Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index vs. Gold Bullion Securities | Amundi Index vs. Xtrackers MSCI Europe |
| Lyxor Index vs. Lyxor UCITS Japan | Lyxor Index vs. Lyxor UCITS Stoxx | Lyxor Index vs. Gold Bullion Securities | Lyxor Index vs. Xtrackers MSCI Europe |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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