Correlation Between Lyxor 1 and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Wynn Resorts 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 Wynn Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Wynn Resorts Limited, you can compare the effects of market volatilities on Lyxor 1 and Wynn Resorts 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 Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Wynn Resorts.
Diversification Opportunities for Lyxor 1 and Wynn Resorts
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Wynn is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited 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 Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Wynn Resorts go up and down completely randomly.
Pair Corralation between Lyxor 1 and Wynn Resorts
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.26 times more return on investment than Wynn Resorts. However, Lyxor 1 is 3.87 times less risky than Wynn Resorts. It trades about 0.18 of its potential returns per unit of risk. Wynn Resorts Limited is currently generating about 0.04 per unit of risk. If you would invest 2,423 in Lyxor 1 on September 2, 2024 and sell it today you would earn a total of 76.00 from holding Lyxor 1 or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. Wynn Resorts Limited
Performance |
| Timeline |
| Lyxor 1 |
| Wynn Resorts Limited |
Lyxor 1 and Wynn Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Wynn Resorts
The main advantage of trading using opposite Lyxor 1 and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Wynn Resorts 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 Wynn Resorts will offset losses from the drop in Wynn Resorts' 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 |
| Wynn Resorts vs. Superior Plus Corp | Wynn Resorts vs. NMI Holdings | Wynn Resorts vs. Origin Agritech | Wynn Resorts vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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