Correlation Between Lyxor 1 and SPDR SP
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By analyzing existing cross correlation between Lyxor 1 and SPDR SP Technology, you can compare the effects of market volatilities on Lyxor 1 and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and SPDR SP.
Diversification Opportunities for Lyxor 1 and SPDR SP
Poor diversification
The 3 months correlation between Lyxor and SPDR is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and SPDR SP Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Technology 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Technology has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and SPDR SP go up and down completely randomly.
Pair Corralation between Lyxor 1 and SPDR SP
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 3.39 times less return on investment than SPDR SP. But when comparing it to its historical volatility, Lyxor 1 is 1.37 times less risky than SPDR SP. It trades about 0.06 of its potential returns per unit of risk. SPDR SP Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 10,170 in SPDR SP Technology on September 3, 2024 and sell it today you would earn a total of 1,294 from holding SPDR SP Technology or generate 12.72% 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. SPDR SP Technology
Performance |
| Timeline |
| Lyxor 1 |
| SPDR SP Technology |
Lyxor 1 and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and SPDR SP
The main advantage of trading using opposite Lyxor 1 and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP'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 |
| SPDR SP vs. UBS Fund Solutions | SPDR SP vs. Xtrackers II | SPDR SP vs. Xtrackers Nikkei 225 | SPDR SP vs. iShares VII PLC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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