Correlation Between Lyxor 1 and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Amundi Index 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 Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Amundi Index Solutions, you can compare the effects of market volatilities on Lyxor 1 and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Amundi Index.
Diversification Opportunities for Lyxor 1 and Amundi Index
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Amundi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Amundi Index go up and down completely randomly.
Pair Corralation between Lyxor 1 and Amundi Index
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 516.0 times less return on investment than Amundi Index. But when comparing it to its historical volatility, Lyxor 1 is 1.08 times less risky than Amundi Index. It trades about 0.0 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Amundi Index Solutions on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Amundi Index Solutions or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. Amundi Index Solutions
Performance |
| Timeline |
| Lyxor 1 |
| Amundi Index Solutions |
Lyxor 1 and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Amundi Index
The main advantage of trading using opposite Lyxor 1 and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index'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 |
| Amundi Index vs. Amundi MSCI Europe | Amundi Index vs. Amundi SP 500 | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Euro Stoxx |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |