Correlation Between Lyxor 1 and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Kuehne Nagel 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 Kuehne Nagel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Kuehne Nagel International, you can compare the effects of market volatilities on Lyxor 1 and Kuehne Nagel 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 Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Kuehne Nagel.
Diversification Opportunities for Lyxor 1 and Kuehne Nagel
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Kuehne is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna 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 Kuehne Nagel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Kuehne Nagel go up and down completely randomly.
Pair Corralation between Lyxor 1 and Kuehne Nagel
Assuming the 90 days trading horizon Lyxor 1 is expected to under-perform the Kuehne Nagel. But the etf apears to be less risky and, when comparing its historical volatility, Lyxor 1 is 1.41 times less risky than Kuehne Nagel. The etf trades about -0.09 of its potential returns per unit of risk. The Kuehne Nagel International is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,580 in Kuehne Nagel International on August 24, 2024 and sell it today you would lose (60.00) from holding Kuehne Nagel International or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. Kuehne Nagel International
Performance |
| Timeline |
| Lyxor 1 |
| Kuehne Nagel Interna |
Lyxor 1 and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Kuehne Nagel
The main advantage of trading using opposite Lyxor 1 and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Kuehne Nagel 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 Kuehne Nagel will offset losses from the drop in Kuehne Nagel's 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 |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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