Correlation Between Lyxor 1 and GIYANI GOLD
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and GIYANI GOLD 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 GIYANI GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and GIYANI GOLD, you can compare the effects of market volatilities on Lyxor 1 and GIYANI GOLD 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 GIYANI GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and GIYANI GOLD.
Diversification Opportunities for Lyxor 1 and GIYANI GOLD
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and GIYANI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and GIYANI GOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GIYANI GOLD 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 GIYANI GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GIYANI GOLD has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and GIYANI GOLD go up and down completely randomly.
Pair Corralation between Lyxor 1 and GIYANI GOLD
If you would invest 2,462 in Lyxor 1 on September 13, 2024 and sell it today you would earn a total of 124.00 from holding Lyxor 1 or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lyxor 1 vs. GIYANI GOLD
Performance |
| Timeline |
| Lyxor 1 |
| GIYANI GOLD |
Lyxor 1 and GIYANI GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and GIYANI GOLD
The main advantage of trading using opposite Lyxor 1 and GIYANI GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, GIYANI GOLD 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 GIYANI GOLD will offset losses from the drop in GIYANI GOLD'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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