Correlation Between Amundi German and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi German 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 German 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 German Bund and Lyxor UCITS Japan, you can compare the effects of market volatilities on Amundi German 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 German with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi German and Lyxor UCITS.
Diversification Opportunities for Amundi German and Lyxor UCITS
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Lyxor is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amundi German Bund and Lyxor UCITS Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Japan and Amundi German 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 German Bund 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 Japan has no effect on the direction of Amundi German i.e., Amundi German and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi German and Lyxor UCITS
Assuming the 90 days trading horizon Amundi German Bund is expected to under-perform the Lyxor UCITS. But the etf apears to be less risky and, when comparing its historical volatility, Amundi German Bund is 1.47 times less risky than Lyxor UCITS. The etf trades about -0.05 of its potential returns per unit of risk. The Lyxor UCITS Japan is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21,703 in Lyxor UCITS Japan on September 13, 2024 and sell it today you would earn a total of 452.00 from holding Lyxor UCITS Japan or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi German Bund vs. Lyxor UCITS Japan
Performance |
| Timeline |
| Amundi German Bund |
| Lyxor UCITS Japan |
Amundi German and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi German and Lyxor UCITS
The main advantage of trading using opposite Amundi German and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi German 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 German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Stoxx | Amundi German vs. Amundi CAC 40 |
| Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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