Correlation Between Lyxor 1 and PNE AG
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By analyzing existing cross correlation between Lyxor 1 and PNE AG, you can compare the effects of market volatilities on Lyxor 1 and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and PNE AG.
Diversification Opportunities for Lyxor 1 and PNE AG
Modest diversification
The 3 months correlation between Lyxor and PNE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and PNE AG go up and down completely randomly.
Pair Corralation between Lyxor 1 and PNE AG
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.78 times more return on investment than PNE AG. However, Lyxor 1 is 1.28 times less risky than PNE AG. It trades about 0.21 of its potential returns per unit of risk. PNE AG is currently generating about -0.24 per unit of risk. If you would invest 2,413 in Lyxor 1 on September 4, 2024 and sell it today you would earn a total of 86.00 from holding Lyxor 1 or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lyxor 1 vs. PNE AG
Performance |
| Timeline |
| Lyxor 1 |
| PNE AG |
Lyxor 1 and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and PNE AG
The main advantage of trading using opposite Lyxor 1 and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG'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 |
| PNE AG vs. CN LGYPWRGRUNSPADR10 | PNE AG vs. Lyxor 1 | PNE AG vs. Xtrackers ShortDAX | PNE AG vs. Xtrackers LevDAX |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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