Correlation Between Lyxor 1 and Hays Plc
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Hays Plc 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 Hays Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Hays plc, you can compare the effects of market volatilities on Lyxor 1 and Hays Plc 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 Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Hays Plc.
Diversification Opportunities for Lyxor 1 and Hays Plc
Very good diversification
The 3 months correlation between Lyxor and Hays is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Hays plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hays plc 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 Hays Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hays plc has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Hays Plc go up and down completely randomly.
Pair Corralation between Lyxor 1 and Hays Plc
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.22 times more return on investment than Hays Plc. However, Lyxor 1 is 4.52 times less risky than Hays Plc. It trades about 0.18 of its potential returns per unit of risk. Hays plc is currently generating about -0.01 per unit of risk. If you would invest 2,423 in Lyxor 1 on September 2, 2024 and sell it today you would earn a total of 76.00 from holding Lyxor 1 or generate 3.14% 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. Hays plc
Performance |
| Timeline |
| Lyxor 1 |
| Hays plc |
Lyxor 1 and Hays Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Hays Plc
The main advantage of trading using opposite Lyxor 1 and Hays Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Hays Plc 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 Hays Plc will offset losses from the drop in Hays Plc'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 |
| Hays Plc vs. National Bank Holdings | Hays Plc vs. SEI INVESTMENTS | Hays Plc vs. EAT WELL INVESTMENT | Hays Plc vs. SLR Investment Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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