Correlation Between Lyxor Fed and Lyxor 1
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By analyzing existing cross correlation between Lyxor Fed Funds and Lyxor 1 , you can compare the effects of market volatilities on Lyxor Fed and Lyxor 1 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 Fed with a short position of Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Fed and Lyxor 1.
Diversification Opportunities for Lyxor Fed and Lyxor 1
Weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Fed Funds and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 and Lyxor Fed 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 Fed Funds are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Lyxor Fed i.e., Lyxor Fed and Lyxor 1 go up and down completely randomly.
Pair Corralation between Lyxor Fed and Lyxor 1
Assuming the 90 days trading horizon Lyxor Fed Funds is expected to generate 0.61 times more return on investment than Lyxor 1. However, Lyxor Fed Funds is 1.65 times less risky than Lyxor 1. It trades about 0.29 of its potential returns per unit of risk. Lyxor 1 is currently generating about -0.07 per unit of risk. If you would invest 9,992 in Lyxor Fed Funds on August 27, 2024 and sell it today you would earn a total of 353.00 from holding Lyxor Fed Funds or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Fed Funds vs. Lyxor 1
Performance |
| Timeline |
| Lyxor Fed Funds |
| Lyxor 1 |
Lyxor Fed and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Fed and Lyxor 1
The main advantage of trading using opposite Lyxor Fed and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Fed position performs unexpectedly, Lyxor 1 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 1 will offset losses from the drop in Lyxor 1's long position.| Lyxor Fed vs. UBS Fund Solutions | Lyxor Fed vs. Xtrackers II | Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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