Correlation Between Lyxor Fed and Lyxor BofAML
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By analyzing existing cross correlation between Lyxor Fed Funds and Lyxor BofAML USD, you can compare the effects of market volatilities on Lyxor Fed and Lyxor BofAML 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 BofAML. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Fed and Lyxor BofAML.
Diversification Opportunities for Lyxor Fed and Lyxor BofAML
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Fed Funds and Lyxor BofAML USD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor BofAML USD 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 BofAML. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor BofAML USD has no effect on the direction of Lyxor Fed i.e., Lyxor Fed and Lyxor BofAML go up and down completely randomly.
Pair Corralation between Lyxor Fed and Lyxor BofAML
Assuming the 90 days trading horizon Lyxor Fed Funds is expected to generate 2.14 times more return on investment than Lyxor BofAML. However, Lyxor Fed is 2.14 times more volatile than Lyxor BofAML USD. It trades about 0.26 of its potential returns per unit of risk. Lyxor BofAML USD is currently generating about 0.15 per unit of risk. If you would invest 9,955 in Lyxor Fed Funds on August 31, 2024 and sell it today you would earn a total of 338.00 from holding Lyxor Fed Funds or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Fed Funds vs. Lyxor BofAML USD
Performance |
| Timeline |
| Lyxor Fed Funds |
| Lyxor BofAML USD |
Lyxor Fed and Lyxor BofAML Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Fed and Lyxor BofAML
The main advantage of trading using opposite Lyxor Fed and Lyxor BofAML positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Fed position performs unexpectedly, Lyxor BofAML 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 BofAML will offset losses from the drop in Lyxor BofAML'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 BofAML vs. UBS Fund Solutions | Lyxor BofAML vs. Xtrackers II | Lyxor BofAML vs. Xtrackers Nikkei 225 | Lyxor BofAML vs. iShares VII PLC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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