Correlation Between Lyxor 10Y and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and Dow Jones 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 10Y and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 10Y Treasury and Dow Jones Industrial, you can compare the effects of market volatilities on Lyxor 10Y and Dow Jones 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 10Y with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and Dow Jones.
Diversification Opportunities for Lyxor 10Y and Dow Jones
Very weak diversification
The 3 months correlation between Lyxor and Dow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Treasury and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Lyxor 10Y 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 10Y Treasury are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and Dow Jones go up and down completely randomly.
Pair Corralation between Lyxor 10Y and Dow Jones
If you would invest 11,112 in Lyxor 10Y Treasury on December 5, 2024 and sell it today you would earn a total of 0.00 from holding Lyxor 10Y Treasury or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Lyxor 10Y Treasury vs. Dow Jones Industrial
Performance |
| Timeline |
Lyxor 10Y and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Lyxor 10Y Treasury
Pair trading matchups for Lyxor 10Y
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Lyxor 10Y and Dow Jones
The main advantage of trading using opposite Lyxor 10Y and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Lyxor 10Y vs. Amundi German Bund | Lyxor 10Y vs. Lyxor SP 500 | Lyxor 10Y vs. Lyxor UCITS Daily | Lyxor 10Y vs. Lyxor UCITS Stoxx |
| Dow Jones vs. Ecovyst | Dow Jones vs. ioneer Ltd American | Dow Jones vs. Eastman Chemical | Dow Jones vs. Zijin Mining Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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