Correlation Between Lyxor CAC and Amundi SP
Can any of the company-specific risk be diversified away by investing in both Lyxor CAC and Amundi SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Lyxor CAC and Amundi SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor CAC and Amundi SP.
Diversification Opportunities for Lyxor CAC and Amundi SP
Excellent diversification
The 3 months correlation between Lyxor and Amundi is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor CAC 40 and Amundi SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP 500 has no effect on the direction of Lyxor CAC i.e., Lyxor CAC and Amundi SP go up and down completely randomly.
Pair Corralation between Lyxor CAC and Amundi SP
Assuming the 90 days trading horizon Lyxor CAC 40 is expected to under-perform the Amundi SP. In addition to that, Lyxor CAC is 1.11 times more volatile than Amundi SP 500. It trades about -0.08 of its total potential returns per unit of risk. Amundi SP 500 is currently generating about 0.16 per unit of volatility. If you would invest 13,864 in Amundi SP 500 on August 29, 2024 and sell it today you would earn a total of 2,655 from holding Amundi SP 500 or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor CAC 40 vs. Amundi SP 500
Performance |
| Timeline |
| Lyxor CAC 40 |
| Amundi SP 500 |
Lyxor CAC and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor CAC and Amundi SP
The main advantage of trading using opposite Lyxor CAC and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor CAC position performs unexpectedly, Amundi SP 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 SP will offset losses from the drop in Amundi SP's long position.| Lyxor CAC vs. Amundi Index Solutions | Lyxor CAC vs. Manitou BF SA | Lyxor CAC vs. Ossiam Minimum Variance | Lyxor CAC vs. Ekinops SA |
| Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi SP 500 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |