Correlation Between Lyxor 1 and STRAX AB
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and STRAX AB 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 STRAX AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and STRAX AB SK, you can compare the effects of market volatilities on Lyxor 1 and STRAX AB 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 STRAX AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and STRAX AB.
Diversification Opportunities for Lyxor 1 and STRAX AB
Excellent diversification
The 3 months correlation between Lyxor and STRAX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and STRAX AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAX AB SK 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 STRAX AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAX AB SK has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and STRAX AB go up and down completely randomly.
Pair Corralation between Lyxor 1 and STRAX AB
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 359.85 times less return on investment than STRAX AB. But when comparing it to its historical volatility, Lyxor 1 is 61.03 times less risky than STRAX AB. It trades about 0.01 of its potential returns per unit of risk. STRAX AB SK is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10.00 in STRAX AB SK on October 7, 2024 and sell it today you would lose (9.16) from holding STRAX AB SK or give up 91.6% 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. STRAX AB SK
Performance |
| Timeline |
| Lyxor 1 |
| STRAX AB SK |
Lyxor 1 and STRAX AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and STRAX AB
The main advantage of trading using opposite Lyxor 1 and STRAX AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, STRAX AB 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 STRAX AB will offset losses from the drop in STRAX AB'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 |
| STRAX AB vs. PREMIER FOODS | STRAX AB vs. Astral Foods Limited | STRAX AB vs. Jacquet Metal Service | STRAX AB vs. UNITED RENTALS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |