Correlation Between Lyxor 1 and FUJIFILM Holdings
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and FUJIFILM Holdings 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 FUJIFILM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and FUJIFILM Holdings, you can compare the effects of market volatilities on Lyxor 1 and FUJIFILM Holdings 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 FUJIFILM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and FUJIFILM Holdings.
Diversification Opportunities for Lyxor 1 and FUJIFILM Holdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lyxor and FUJIFILM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and FUJIFILM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings 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 FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and FUJIFILM Holdings go up and down completely randomly.
Pair Corralation between Lyxor 1 and FUJIFILM Holdings
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.5 times more return on investment than FUJIFILM Holdings. However, Lyxor 1 is 2.02 times less risky than FUJIFILM Holdings. It trades about 0.21 of its potential returns per unit of risk. FUJIFILM Holdings is currently generating about 0.03 per unit of risk. If you would invest 2,498 in Lyxor 1 on October 20, 2024 and sell it today you would earn a total of 81.00 from holding Lyxor 1 or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. FUJIFILM Holdings
Performance |
| Timeline |
| Lyxor 1 |
| FUJIFILM Holdings |
Lyxor 1 and FUJIFILM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and FUJIFILM Holdings
The main advantage of trading using opposite Lyxor 1 and FUJIFILM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, FUJIFILM Holdings 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 FUJIFILM Holdings will offset losses from the drop in FUJIFILM Holdings' 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 |
| FUJIFILM Holdings vs. Canon Inc | FUJIFILM Holdings vs. Panasonic Corp | FUJIFILM Holdings vs. Aeon Co | FUJIFILM Holdings vs. Olympus |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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