Correlation Between Autoneum Holding and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Autoneum Holding and Lyxor MSCI 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 Autoneum Holding and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autoneum Holding AG and Lyxor MSCI Brazil, you can compare the effects of market volatilities on Autoneum Holding and Lyxor MSCI 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 Autoneum Holding with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoneum Holding and Lyxor MSCI.
Diversification Opportunities for Autoneum Holding and Lyxor MSCI
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Autoneum and Lyxor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Autoneum Holding AG and Lyxor MSCI Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI Brazil and Autoneum Holding 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 Autoneum Holding AG are associated (or correlated) with Lyxor MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor MSCI Brazil has no effect on the direction of Autoneum Holding i.e., Autoneum Holding and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Autoneum Holding and Lyxor MSCI
Assuming the 90 days trading horizon Autoneum Holding is expected to generate 3.0 times less return on investment than Lyxor MSCI. In addition to that, Autoneum Holding is 1.35 times more volatile than Lyxor MSCI Brazil. It trades about 0.0 of its total potential returns per unit of risk. Lyxor MSCI Brazil is currently generating about 0.02 per unit of volatility. If you would invest 1,847 in Lyxor MSCI Brazil on August 31, 2024 and sell it today you would earn a total of 138.00 from holding Lyxor MSCI Brazil or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autoneum Holding AG vs. Lyxor MSCI Brazil
Performance |
| Timeline |
| Autoneum Holding |
| Lyxor MSCI Brazil |
Autoneum Holding and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoneum Holding and Lyxor MSCI
The main advantage of trading using opposite Autoneum Holding and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoneum Holding position performs unexpectedly, Lyxor MSCI 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 MSCI will offset losses from the drop in Lyxor MSCI's long position.| Autoneum Holding vs. Rieter Holding AG | Autoneum Holding vs. Comet Holding AG | Autoneum Holding vs. VAT Group AG | Autoneum Holding vs. Bossard Holding AG |
| Lyxor MSCI vs. Procimmo Real Estate | Lyxor MSCI vs. SPDR Dow Jones | Lyxor MSCI vs. Baloise Holding AG | Lyxor MSCI vs. Autoneum Holding AG |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges |