Correlation Between Lyxor 1 and RUECKER IMMOBILIEN
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and RUECKER IMMOBILIEN, you can compare the effects of market volatilities on Lyxor 1 and RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and RUECKER IMMOBILIEN.
Diversification Opportunities for Lyxor 1 and RUECKER IMMOBILIEN
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and RUECKER is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and RUECKER IMMOBILIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RUECKER IMMOBILIEN has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and RUECKER IMMOBILIEN go up and down completely randomly.
Pair Corralation between Lyxor 1 and RUECKER IMMOBILIEN
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.14 times more return on investment than RUECKER IMMOBILIEN. However, Lyxor 1 is 7.29 times less risky than RUECKER IMMOBILIEN. It trades about 0.02 of its potential returns per unit of risk. RUECKER IMMOBILIEN is currently generating about -0.06 per unit of risk. If you would invest 2,470 in Lyxor 1 on September 20, 2024 and sell it today you would earn a total of 90.00 from holding Lyxor 1 or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lyxor 1 vs. RUECKER IMMOBILIEN
Performance |
| Timeline |
| Lyxor 1 |
| RUECKER IMMOBILIEN |
Lyxor 1 and RUECKER IMMOBILIEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and RUECKER IMMOBILIEN
The main advantage of trading using opposite Lyxor 1 and RUECKER IMMOBILIEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN will offset losses from the drop in RUECKER IMMOBILIEN'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 |
| RUECKER IMMOBILIEN vs. Apple Inc | RUECKER IMMOBILIEN vs. Apple Inc | RUECKER IMMOBILIEN vs. Apple Inc | RUECKER IMMOBILIEN vs. Microsoft |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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