Correlation Between Lyxor CAC and Amundi Stoxx
Can any of the company-specific risk be diversified away by investing in both Lyxor CAC and Amundi Stoxx 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 CAC and Amundi Stoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor CAC 40 and Amundi Stoxx Europe, you can compare the effects of market volatilities on Lyxor CAC and Amundi Stoxx 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 CAC with a short position of Amundi Stoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor CAC and Amundi Stoxx.
Diversification Opportunities for Lyxor CAC and Amundi Stoxx
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor CAC 40 and Amundi Stoxx Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Stoxx Europe and Lyxor CAC 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 CAC 40 are associated (or correlated) with Amundi Stoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Stoxx Europe has no effect on the direction of Lyxor CAC i.e., Lyxor CAC and Amundi Stoxx go up and down completely randomly.
Pair Corralation between Lyxor CAC and Amundi Stoxx
If you would invest (100.00) in Amundi Stoxx Europe on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Amundi Stoxx Europe or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor CAC 40 vs. Amundi Stoxx Europe
Performance |
| Timeline |
| Lyxor CAC 40 |
| Amundi Stoxx Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lyxor CAC and Amundi Stoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor CAC and Amundi Stoxx
The main advantage of trading using opposite Lyxor CAC and Amundi Stoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor CAC position performs unexpectedly, Amundi Stoxx 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 Amundi Stoxx will offset losses from the drop in Amundi Stoxx's long position.| Lyxor CAC vs. Amundi Index Solutions | Lyxor CAC vs. Amundi ETF PEA | Lyxor CAC vs. Amundi ETF PEA | Lyxor CAC vs. Amundi Index Solutions |
| Amundi Stoxx vs. Amundi Index Solutions | Amundi Stoxx vs. iShares Core SP | Amundi Stoxx 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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