Correlation Between Lyxor 1 and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Aya Gold 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 1 and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Aya Gold Silver, you can compare the effects of market volatilities on Lyxor 1 and Aya Gold 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 1 with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Aya Gold.
Diversification Opportunities for Lyxor 1 and Aya Gold
Very good diversification
The 3 months correlation between Lyxor and Aya is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Lyxor 1 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 1 are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Aya Gold go up and down completely randomly.
Pair Corralation between Lyxor 1 and Aya Gold
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.36 times more return on investment than Aya Gold. However, Lyxor 1 is 2.75 times less risky than Aya Gold. It trades about -0.26 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.38 per unit of risk. If you would invest 2,586 in Lyxor 1 on October 11, 2024 and sell it today you would lose (102.00) from holding Lyxor 1 or give up 3.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Lyxor 1 vs. Aya Gold Silver
Performance |
| Timeline |
| Lyxor 1 |
| Aya Gold Silver |
Lyxor 1 and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Aya Gold
The main advantage of trading using opposite Lyxor 1 and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
| Aya Gold vs. ECHO INVESTMENT ZY | Aya Gold vs. SLR Investment Corp | Aya Gold vs. DIVERSIFIED ROYALTY | Aya Gold vs. HK Electric Investments |
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 CEOs Directory module to screen CEOs from public companies around the world.
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