Correlation Between Lyxor 10Y and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and Amundi Index 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 Index 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 Index Solutions, you can compare the effects of market volatilities on Lyxor 10Y and Amundi Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and Amundi Index.
Diversification Opportunities for Lyxor 10Y and Amundi Index
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lyxor and Amundi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Treasury and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and Amundi Index go up and down completely randomly.
Pair Corralation between Lyxor 10Y and Amundi Index
Assuming the 90 days trading horizon Lyxor 10Y is expected to generate 7.53 times less return on investment than Amundi Index. But when comparing it to its historical volatility, Lyxor 10Y Treasury is 1.01 times less risky than Amundi Index. It trades about 0.02 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 31,767 in Amundi Index Solutions on October 24, 2024 and sell it today you would earn a total of 1,076 from holding Amundi Index Solutions or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 10Y Treasury vs. Amundi Index Solutions
Performance |
| Timeline |
| Lyxor 10Y Treasury |
| Amundi Index Solutions |
Lyxor 10Y and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and Amundi Index
The main advantage of trading using opposite Lyxor 10Y and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index'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 Index vs. Amundi ETF PEA | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. EasyETF BNP | Amundi Index vs. Amundi ETF PEA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |