Correlation Between Lyxor 1 and Lyxor Fed
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By analyzing existing cross correlation between Lyxor 1 and Lyxor Fed Funds, you can compare the effects of market volatilities on Lyxor 1 and Lyxor Fed 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 Lyxor Fed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Lyxor Fed.
Diversification Opportunities for Lyxor 1 and Lyxor Fed
Weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Lyxor Fed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Fed Funds 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 Lyxor Fed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Fed Funds has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Lyxor Fed go up and down completely randomly.
Pair Corralation between Lyxor 1 and Lyxor Fed
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 46.0 times less return on investment than Lyxor Fed. In addition to that, Lyxor 1 is 2.55 times more volatile than Lyxor Fed Funds. It trades about 0.0 of its total potential returns per unit of risk. Lyxor Fed Funds is currently generating about 0.1 per unit of volatility. If you would invest 9,582 in Lyxor Fed Funds on August 28, 2024 and sell it today you would earn a total of 763.00 from holding Lyxor Fed Funds or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
Lyxor 1 vs. Lyxor Fed Funds
Performance |
| Timeline |
| Lyxor 1 |
| Lyxor Fed Funds |
Lyxor 1 and Lyxor Fed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Lyxor Fed
The main advantage of trading using opposite Lyxor 1 and Lyxor Fed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Lyxor Fed 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 Lyxor Fed will offset losses from the drop in Lyxor Fed'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 |
| Lyxor Fed vs. Lyxor BofAML USD | Lyxor Fed vs. Lyxor 1 TecDAX | Lyxor Fed vs. Lyxor UCITS EuroMTS | Lyxor Fed vs. Lyxor TIPS DR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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