Correlation Between Lyxor Fed and Lyxor Index
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By analyzing existing cross correlation between Lyxor Fed Funds and Lyxor Index Fund, you can compare the effects of market volatilities on Lyxor Fed 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 Lyxor Fed with a short position of Lyxor Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Fed and Lyxor Index.
Diversification Opportunities for Lyxor Fed and Lyxor Index
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lyxor and Lyxor is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Fed Funds 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 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 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 Lyxor Fed i.e., Lyxor Fed and Lyxor Index go up and down completely randomly.
Pair Corralation between Lyxor Fed and Lyxor Index
Assuming the 90 days trading horizon Lyxor Fed Funds is expected to generate 0.66 times more return on investment than Lyxor Index. However, Lyxor Fed Funds is 1.52 times less risky than Lyxor Index. It trades about 0.25 of its potential returns per unit of risk. Lyxor Index Fund is currently generating about 0.11 per unit of risk. If you would invest 9,973 in Lyxor Fed Funds on September 2, 2024 and sell it today you would earn a total of 319.00 from holding Lyxor Fed Funds or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Lyxor Fed Funds vs. Lyxor Index Fund
Performance |
| Timeline |
| Lyxor Fed Funds |
| Lyxor Index Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Lyxor Fed and Lyxor Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Fed and Lyxor Index
The main advantage of trading using opposite Lyxor Fed and Lyxor Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Fed 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.| Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC | Lyxor Fed vs. NMI Holdings | Lyxor Fed vs. SIVERS SEMICONDUCTORS AB |
| Lyxor Index vs. UBS Fund Solutions | Lyxor Index vs. Vanguard Funds Public | Lyxor Index vs. iShares Core SP | Lyxor Index vs. iShares Core MSCI |
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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