Correlation Between Lyxor Index and Multi Units
Can any of the company-specific risk be diversified away by investing in both Lyxor Index and Multi Units 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 Index and Multi Units into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Index Fund and Multi Units France, you can compare the effects of market volatilities on Lyxor Index and Multi Units 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 Index with a short position of Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Multi Units.
Diversification Opportunities for Lyxor Index and Multi Units
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Multi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Multi Units France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units France and Lyxor 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 Lyxor Index Fund are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units France has no effect on the direction of Lyxor Index i.e., Lyxor Index and Multi Units go up and down completely randomly.
Pair Corralation between Lyxor Index and Multi Units
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 1.02 times more return on investment than Multi Units. However, Lyxor Index is 1.02 times more volatile than Multi Units France. It trades about 0.11 of its potential returns per unit of risk. Multi Units France is currently generating about 0.08 per unit of risk. If you would invest 2,517 in Lyxor Index Fund on September 2, 2024 and sell it today you would earn a total of 745.00 from holding Lyxor Index Fund or generate 29.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Index Fund vs. Multi Units France
Performance |
| Timeline |
| Lyxor Index Fund |
| Multi Units France |
Lyxor Index and Multi Units Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Multi Units
The main advantage of trading using opposite Lyxor Index and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.| Lyxor Index vs. Manitou BF SA | Lyxor Index vs. Granite 3x LVMH | Lyxor Index vs. 21Shares Polkadot ETP | Lyxor Index vs. Ekinops SA |
| Multi Units vs. Lyxor MSCI China | Multi Units vs. Lyxor MSCI Brazil | Multi Units vs. MULTI UNITS LUXEMBOURG | Multi Units 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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