Correlation Between Lyxor 1 and Corticeira Amorim
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Corticeira Amorim 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 Corticeira Amorim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Corticeira Amorim SGPS, you can compare the effects of market volatilities on Lyxor 1 and Corticeira Amorim 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 Corticeira Amorim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Corticeira Amorim.
Diversification Opportunities for Lyxor 1 and Corticeira Amorim
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Corticeira is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Corticeira Amorim SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corticeira Amorim SGPS 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 Corticeira Amorim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corticeira Amorim SGPS has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Corticeira Amorim go up and down completely randomly.
Pair Corralation between Lyxor 1 and Corticeira Amorim
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.96 times more return on investment than Corticeira Amorim. However, Lyxor 1 is 1.05 times less risky than Corticeira Amorim. It trades about 0.02 of its potential returns per unit of risk. Corticeira Amorim SGPS is currently generating about 0.01 per unit of risk. If you would invest 2,299 in Lyxor 1 on August 30, 2024 and sell it today you would earn a total of 180.00 from holding Lyxor 1 or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lyxor 1 vs. Corticeira Amorim SGPS
Performance |
| Timeline |
| Lyxor 1 |
| Corticeira Amorim SGPS |
Lyxor 1 and Corticeira Amorim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Corticeira Amorim
The main advantage of trading using opposite Lyxor 1 and Corticeira Amorim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Corticeira Amorim 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 Corticeira Amorim will offset losses from the drop in Corticeira Amorim'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 |
| Corticeira Amorim vs. Svenska Cellulosa Aktiebolaget | Corticeira Amorim vs. Superior Plus Corp | Corticeira Amorim vs. NMI Holdings | Corticeira Amorim vs. SIVERS SEMICONDUCTORS AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |