Correlation Between Lyxor UCITS and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS 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 Lyxor UCITS and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS CAC and Lyxor UCITS NASDAQ 100, you can compare the effects of market volatilities on Lyxor UCITS 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 Lyxor UCITS with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Lyxor UCITS.
Diversification Opportunities for Lyxor UCITS and Lyxor UCITS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS CAC and Lyxor UCITS NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS NASDAQ and Lyxor UCITS 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 UCITS CAC 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 NASDAQ has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Lyxor UCITS
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 1.19 times less return on investment than Lyxor UCITS. But when comparing it to its historical volatility, Lyxor UCITS CAC is 1.17 times less risky than Lyxor UCITS. It trades about 0.1 of its potential returns per unit of risk. Lyxor UCITS NASDAQ 100 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 96,590 in Lyxor UCITS NASDAQ 100 on August 29, 2024 and sell it today you would earn a total of 28,490 from holding Lyxor UCITS NASDAQ 100 or generate 29.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS CAC vs. Lyxor UCITS NASDAQ 100
Performance |
| Timeline |
| Lyxor UCITS CAC |
| Lyxor UCITS NASDAQ |
Lyxor UCITS and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Lyxor UCITS
The main advantage of trading using opposite Lyxor UCITS and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS 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.| Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor SP 500 | Lyxor UCITS vs. Lyxor UCITS Daily |
| Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Amundi ETF Leveraged | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Lyxor UCITS CAC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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