Correlation Between Amundi Index and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Lyxor UCITS 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 Amundi Index and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Lyxor UCITS NASDAQ 100, you can compare the effects of market volatilities on Amundi Index and Lyxor UCITS 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 Amundi Index with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Lyxor UCITS.
Diversification Opportunities for Amundi Index and Lyxor UCITS
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Lyxor is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Lyxor UCITS NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS NASDAQ and Amundi Index 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 Amundi Index Solutions are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS NASDAQ has no effect on the direction of Amundi Index i.e., Amundi Index and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi Index and Lyxor UCITS
Assuming the 90 days trading horizon Amundi Index is expected to generate 1.69 times less return on investment than Lyxor UCITS. But when comparing it to its historical volatility, Amundi Index Solutions is 2.38 times less risky than Lyxor UCITS. It trades about 0.37 of its potential returns per unit of risk. Lyxor UCITS NASDAQ 100 is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 110,620 in Lyxor UCITS NASDAQ 100 on September 1, 2024 and sell it today you would earn a total of 13,760 from holding Lyxor UCITS NASDAQ 100 or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Lyxor UCITS NASDAQ 100
Performance |
| Timeline |
| Amundi Index Solutions |
| Lyxor UCITS NASDAQ |
Amundi Index and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Lyxor UCITS
The main advantage of trading using opposite Amundi Index and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Amundi Index vs. Multi Units France | Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance |
| Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Amundi ETF Leveraged | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Lyxor UCITS CAC |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance |