Correlation Between Lyxor 1 and CN LGYPWRGRUNSPADR1
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and CN LGYPWRGRUNSPADR1 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 CN LGYPWRGRUNSPADR1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and CN LGYPWRGRUNSPADR10, you can compare the effects of market volatilities on Lyxor 1 and CN LGYPWRGRUNSPADR1 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 CN LGYPWRGRUNSPADR1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and CN LGYPWRGRUNSPADR1.
Diversification Opportunities for Lyxor 1 and CN LGYPWRGRUNSPADR1
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and 6WX0 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and CN LGYPWRGRUNSPADR10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN LGYPWRGRUNSPADR10 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 CN LGYPWRGRUNSPADR1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN LGYPWRGRUNSPADR10 has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and CN LGYPWRGRUNSPADR1 go up and down completely randomly.
Pair Corralation between Lyxor 1 and CN LGYPWRGRUNSPADR1
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.37 times more return on investment than CN LGYPWRGRUNSPADR1. However, Lyxor 1 is 2.71 times less risky than CN LGYPWRGRUNSPADR1. It trades about 0.21 of its potential returns per unit of risk. CN LGYPWRGRUNSPADR10 is currently generating about -0.05 per unit of risk. If you would invest 2,413 in Lyxor 1 on September 4, 2024 and sell it today you would earn a total of 86.00 from holding Lyxor 1 or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lyxor 1 vs. CN LGYPWRGRUNSPADR10
Performance |
| Timeline |
| Lyxor 1 |
| CN LGYPWRGRUNSPADR10 |
Lyxor 1 and CN LGYPWRGRUNSPADR1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and CN LGYPWRGRUNSPADR1
The main advantage of trading using opposite Lyxor 1 and CN LGYPWRGRUNSPADR1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, CN LGYPWRGRUNSPADR1 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 CN LGYPWRGRUNSPADR1 will offset losses from the drop in CN LGYPWRGRUNSPADR1's 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 |
| CN LGYPWRGRUNSPADR1 vs. PNE AG | CN LGYPWRGRUNSPADR1 vs. Lyxor 1 | CN LGYPWRGRUNSPADR1 vs. Xtrackers ShortDAX | CN LGYPWRGRUNSPADR1 vs. Xtrackers LevDAX |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |