Correlation Between Lyxor 10Y and Amundi German
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and Amundi German 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 Amundi German 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 Amundi German Bund, you can compare the effects of market volatilities on Lyxor 10Y and Amundi German 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 Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and Amundi German.
Diversification Opportunities for Lyxor 10Y and Amundi German
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Amundi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Treasury and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund 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 Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and Amundi German go up and down completely randomly.
Pair Corralation between Lyxor 10Y and Amundi German
Assuming the 90 days trading horizon Lyxor 10Y Treasury is expected to generate 1.59 times more return on investment than Amundi German. However, Lyxor 10Y is 1.59 times more volatile than Amundi German Bund. It trades about 0.01 of its potential returns per unit of risk. Amundi German Bund is currently generating about -0.12 per unit of risk. If you would invest 10,649 in Lyxor 10Y Treasury on September 17, 2024 and sell it today you would earn a total of 9.00 from holding Lyxor 10Y Treasury or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 10Y Treasury vs. Amundi German Bund
Performance |
| Timeline |
| Lyxor 10Y Treasury |
| Amundi German Bund |
Lyxor 10Y and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and Amundi German
The main advantage of trading using opposite Lyxor 10Y and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, Amundi German 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 German will offset losses from the drop in Amundi German's 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 |
| Amundi German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Japan | Amundi German vs. Lyxor UCITS Stoxx | Amundi German vs. Amundi CAC 40 |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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