Correlation Between Lyxor 1 and Event Hospitality
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Event Hospitality 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 Event Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Event Hospitality and, you can compare the effects of market volatilities on Lyxor 1 and Event Hospitality 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 Event Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Event Hospitality.
Diversification Opportunities for Lyxor 1 and Event Hospitality
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Event is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Event Hospitality and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Event Hospitality 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 Event Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Event Hospitality has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Event Hospitality go up and down completely randomly.
Pair Corralation between Lyxor 1 and Event Hospitality
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.55 times more return on investment than Event Hospitality. However, Lyxor 1 is 1.82 times less risky than Event Hospitality. It trades about 0.02 of its potential returns per unit of risk. Event Hospitality and is currently generating about 0.0 per unit of risk. If you would invest 2,331 in Lyxor 1 on September 3, 2024 and sell it today you would earn a total of 168.00 from holding Lyxor 1 or generate 7.21% 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. Event Hospitality and
Performance |
| Timeline |
| Lyxor 1 |
| Event Hospitality |
Lyxor 1 and Event Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Event Hospitality
The main advantage of trading using opposite Lyxor 1 and Event Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Event Hospitality 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 Event Hospitality will offset losses from the drop in Event Hospitality'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 |
| Event Hospitality vs. Southwest Airlines Co | Event Hospitality vs. SOUTHWEST AIRLINES | Event Hospitality vs. Australian Agricultural | Event Hospitality vs. SINGAPORE AIRLINES |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |