Correlation Between Lyxor 1 and TechnoPro Holdings
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and TechnoPro Holdings 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 TechnoPro Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and TechnoPro Holdings, you can compare the effects of market volatilities on Lyxor 1 and TechnoPro Holdings 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 TechnoPro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and TechnoPro Holdings.
Diversification Opportunities for Lyxor 1 and TechnoPro Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and TechnoPro is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and TechnoPro Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnoPro Holdings 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 TechnoPro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnoPro Holdings has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and TechnoPro Holdings go up and down completely randomly.
Pair Corralation between Lyxor 1 and TechnoPro Holdings
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.49 times more return on investment than TechnoPro Holdings. However, Lyxor 1 is 2.05 times less risky than TechnoPro Holdings. It trades about 0.01 of its potential returns per unit of risk. TechnoPro Holdings is currently generating about -0.02 per unit of risk. If you would invest 2,438 in Lyxor 1 on September 2, 2024 and sell it today you would earn a total of 61.00 from holding Lyxor 1 or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. TechnoPro Holdings
Performance |
| Timeline |
| Lyxor 1 |
| TechnoPro Holdings |
Lyxor 1 and TechnoPro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and TechnoPro Holdings
The main advantage of trading using opposite Lyxor 1 and TechnoPro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, TechnoPro Holdings 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 TechnoPro Holdings will offset losses from the drop in TechnoPro Holdings' long position.| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor 1 TecDAX | Lyxor 1 vs. Lyxor UCITS EuroMTS |
| TechnoPro Holdings vs. Cogent Communications Holdings | TechnoPro Holdings vs. TAL Education Group | TechnoPro Holdings vs. SK TELECOM TDADR | TechnoPro Holdings vs. Xinhua Winshare Publishing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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