Correlation Between Ekinops SA and Lyxor PEA
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Lyxor PEA 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 Ekinops SA and Lyxor PEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Lyxor PEA SP, you can compare the effects of market volatilities on Ekinops SA and Lyxor PEA 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 Ekinops SA with a short position of Lyxor PEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Lyxor PEA.
Diversification Opportunities for Ekinops SA and Lyxor PEA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekinops and Lyxor is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Lyxor PEA SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor PEA SP and Ekinops SA 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 Ekinops SA are associated (or correlated) with Lyxor PEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor PEA SP has no effect on the direction of Ekinops SA i.e., Ekinops SA and Lyxor PEA go up and down completely randomly.
Pair Corralation between Ekinops SA and Lyxor PEA
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Lyxor PEA. In addition to that, Ekinops SA is 5.39 times more volatile than Lyxor PEA SP. It trades about -0.16 of its total potential returns per unit of risk. Lyxor PEA SP is currently generating about 0.17 per unit of volatility. If you would invest 4,888 in Lyxor PEA SP on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Lyxor PEA SP or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Lyxor PEA SP
Performance |
| Timeline |
| Ekinops SA |
| Lyxor PEA SP |
Ekinops SA and Lyxor PEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Lyxor PEA
The main advantage of trading using opposite Ekinops SA and Lyxor PEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Lyxor PEA 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 Lyxor PEA will offset losses from the drop in Lyxor PEA's long position.| Ekinops SA vs. Groupe Guillin SA | Ekinops SA vs. Stef SA | Ekinops SA vs. SA Catana Group | Ekinops SA vs. Jacquet Metal Service |
| Lyxor PEA vs. Lyxor UCITS Japan | Lyxor PEA vs. Lyxor UCITS Japan | Lyxor PEA vs. Lyxor UCITS Stoxx | Lyxor PEA vs. Amundi CAC 40 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |