Correlation Between Lyxor 1 and PT Wintermar
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and PT Wintermar 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 PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and PT Wintermar Offshore, you can compare the effects of market volatilities on Lyxor 1 and PT Wintermar 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 PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and PT Wintermar.
Diversification Opportunities for Lyxor 1 and PT Wintermar
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and W6O is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore 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 PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and PT Wintermar go up and down completely randomly.
Pair Corralation between Lyxor 1 and PT Wintermar
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.16 times more return on investment than PT Wintermar. However, Lyxor 1 is 6.17 times less risky than PT Wintermar. It trades about 0.37 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about -0.11 per unit of risk. If you would invest 2,504 in Lyxor 1 on October 28, 2024 and sell it today you would earn a total of 148.00 from holding Lyxor 1 or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. PT Wintermar Offshore
Performance |
| Timeline |
| Lyxor 1 |
| PT Wintermar Offshore |
Lyxor 1 and PT Wintermar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and PT Wintermar
The main advantage of trading using opposite Lyxor 1 and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, PT Wintermar 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 PT Wintermar will offset losses from the drop in PT Wintermar'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 |
| PT Wintermar vs. AP Mller | PT Wintermar vs. AP Mller | PT Wintermar vs. HAPAG LLOYD UNSPADR 12 | PT Wintermar vs. DFDS AS |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |