Correlation Between Lyxor 1 and NOMURA RESEARCH
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and NOMURA RESEARCH 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 NOMURA RESEARCH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and NOMURA RESEARCH, you can compare the effects of market volatilities on Lyxor 1 and NOMURA RESEARCH 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 NOMURA RESEARCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and NOMURA RESEARCH.
Diversification Opportunities for Lyxor 1 and NOMURA RESEARCH
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and NOMURA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and NOMURA RESEARCH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOMURA RESEARCH 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 NOMURA RESEARCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOMURA RESEARCH has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and NOMURA RESEARCH go up and down completely randomly.
Pair Corralation between Lyxor 1 and NOMURA RESEARCH
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.41 times more return on investment than NOMURA RESEARCH. However, Lyxor 1 is 2.47 times less risky than NOMURA RESEARCH. It trades about 0.16 of its potential returns per unit of risk. NOMURA RESEARCH is currently generating about -0.09 per unit of risk. If you would invest 2,368 in Lyxor 1 on September 20, 2024 and sell it today you would earn a total of 192.00 from holding Lyxor 1 or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Lyxor 1 vs. NOMURA RESEARCH
Performance |
| Timeline |
| Lyxor 1 |
| NOMURA RESEARCH |
Lyxor 1 and NOMURA RESEARCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and NOMURA RESEARCH
The main advantage of trading using opposite Lyxor 1 and NOMURA RESEARCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, NOMURA RESEARCH 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 NOMURA RESEARCH will offset losses from the drop in NOMURA RESEARCH'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 |
| NOMURA RESEARCH vs. Apple Inc | NOMURA RESEARCH vs. Apple Inc | NOMURA RESEARCH vs. Apple Inc | NOMURA RESEARCH vs. Apple Inc |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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