Correlation Between Lyxor Commodities and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Lyxor Commodities and SSgA SPDR 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 Commodities and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Commodities RefinitivCoreCommodity and SSgA SPDR ETFs, you can compare the effects of market volatilities on Lyxor Commodities and SSgA SPDR 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 Commodities with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Commodities and SSgA SPDR.
Diversification Opportunities for Lyxor Commodities and SSgA SPDR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and SSgA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Commodities RefinitivCor and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and Lyxor Commodities 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 Commodities RefinitivCoreCommodity are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Lyxor Commodities i.e., Lyxor Commodities and SSgA SPDR go up and down completely randomly.
Pair Corralation between Lyxor Commodities and SSgA SPDR
Assuming the 90 days trading horizon Lyxor Commodities RefinitivCoreCommodity is expected to generate 1.47 times more return on investment than SSgA SPDR. However, Lyxor Commodities is 1.47 times more volatile than SSgA SPDR ETFs. It trades about 0.05 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.0 per unit of risk. If you would invest 2,064 in Lyxor Commodities RefinitivCoreCommodity on September 2, 2024 and sell it today you would earn a total of 239.00 from holding Lyxor Commodities RefinitivCoreCommodity or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lyxor Commodities RefinitivCor vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Lyxor Commodities |
| SSgA SPDR ETFs |
Lyxor Commodities and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Commodities and SSgA SPDR
The main advantage of trading using opposite Lyxor Commodities and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Commodities position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| Lyxor Commodities vs. Lyxor MSCI Brazil | Lyxor Commodities vs. Multi Units France | Lyxor Commodities vs. Lyxor UCITS Stoxx | Lyxor Commodities vs. Multi Units France |
| SSgA SPDR vs. Manitou BF SA | SSgA SPDR vs. Granite 3x LVMH | SSgA SPDR vs. 21Shares Polkadot ETP | SSgA SPDR vs. Ekinops SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |