Correlation Between Lyxor 1 and Crédit Agricole
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Crédit Agricole 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 Crédit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Crdit Agricole SA, you can compare the effects of market volatilities on Lyxor 1 and Crédit Agricole 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 Crédit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Crédit Agricole.
Diversification Opportunities for Lyxor 1 and Crédit Agricole
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Crédit is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Crdit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crdit Agricole SA 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 Crédit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crdit Agricole SA has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Crédit Agricole go up and down completely randomly.
Pair Corralation between Lyxor 1 and Crédit Agricole
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 5.89 times less return on investment than Crédit Agricole. But when comparing it to its historical volatility, Lyxor 1 is 1.44 times less risky than Crédit Agricole. It trades about 0.01 of its potential returns per unit of risk. Crdit Agricole SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,019 in Crdit Agricole SA on September 4, 2024 and sell it today you would earn a total of 241.00 from holding Crdit Agricole SA or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Lyxor 1 vs. Crdit Agricole SA
Performance |
| Timeline |
| Lyxor 1 |
| Crdit Agricole SA |
Lyxor 1 and Crédit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Crédit Agricole
The main advantage of trading using opposite Lyxor 1 and Crédit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Crédit Agricole 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 Crédit Agricole will offset losses from the drop in Crédit Agricole'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 |
| Crédit Agricole vs. Japan Tobacco | Crédit Agricole vs. Charter Communications | Crédit Agricole vs. United Natural Foods | Crédit Agricole vs. COFCO Joycome Foods |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |