Correlation Between Lyxor 1 and BANGCHAK P
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and BANGCHAK P 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 BANGCHAK P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and BANGCHAK P FGN , you can compare the effects of market volatilities on Lyxor 1 and BANGCHAK P 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 BANGCHAK P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and BANGCHAK P.
Diversification Opportunities for Lyxor 1 and BANGCHAK P
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and BANGCHAK is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and BANGCHAK P FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANGCHAK P FGN 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 BANGCHAK P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANGCHAK P FGN has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and BANGCHAK P go up and down completely randomly.
Pair Corralation between Lyxor 1 and BANGCHAK P
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.3 times more return on investment than BANGCHAK P. However, Lyxor 1 is 3.3 times less risky than BANGCHAK P. It trades about 0.05 of its potential returns per unit of risk. BANGCHAK P FGN is currently generating about -0.01 per unit of risk. If you would invest 2,449 in Lyxor 1 on September 21, 2024 and sell it today you would earn a total of 101.00 from holding Lyxor 1 or generate 4.12% 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. BANGCHAK P FGN
Performance |
| Timeline |
| Lyxor 1 |
| BANGCHAK P FGN |
Lyxor 1 and BANGCHAK P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and BANGCHAK P
The main advantage of trading using opposite Lyxor 1 and BANGCHAK P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, BANGCHAK P 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 BANGCHAK P will offset losses from the drop in BANGCHAK P'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 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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