Correlation Between Lyxor 1 and ENTEQ TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and ENTEQ TECHNOLOGIES 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 ENTEQ TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and ENTEQ TECHNOLOGIES LS 01, you can compare the effects of market volatilities on Lyxor 1 and ENTEQ TECHNOLOGIES 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 ENTEQ TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and ENTEQ TECHNOLOGIES.
Diversification Opportunities for Lyxor 1 and ENTEQ TECHNOLOGIES
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and ENTEQ is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and ENTEQ TECHNOLOGIES LS 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTEQ TECHNOLOGIES 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 ENTEQ TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTEQ TECHNOLOGIES has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and ENTEQ TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Lyxor 1 and ENTEQ TECHNOLOGIES
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.09 times more return on investment than ENTEQ TECHNOLOGIES. However, Lyxor 1 is 11.26 times less risky than ENTEQ TECHNOLOGIES. It trades about 0.14 of its potential returns per unit of risk. ENTEQ TECHNOLOGIES LS 01 is currently generating about -0.12 per unit of risk. If you would invest 2,400 in Lyxor 1 on September 13, 2024 and sell it today you would earn a total of 186.00 from holding Lyxor 1 or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. ENTEQ TECHNOLOGIES LS 01
Performance |
| Timeline |
| Lyxor 1 |
| ENTEQ TECHNOLOGIES |
Lyxor 1 and ENTEQ TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and ENTEQ TECHNOLOGIES
The main advantage of trading using opposite Lyxor 1 and ENTEQ TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, ENTEQ TECHNOLOGIES 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 ENTEQ TECHNOLOGIES will offset losses from the drop in ENTEQ TECHNOLOGIES'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 |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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