Correlation Between Gold Bullion and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Gold Bullion and Lyxor UCITS 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 Gold Bullion and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Bullion Securities and Lyxor UCITS FTSE, you can compare the effects of market volatilities on Gold Bullion and Lyxor UCITS 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 Gold Bullion with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bullion and Lyxor UCITS.
Diversification Opportunities for Gold Bullion and Lyxor UCITS
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gold and Lyxor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gold Bullion Securities and Lyxor UCITS FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS FTSE and Gold Bullion 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 Gold Bullion Securities are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS FTSE has no effect on the direction of Gold Bullion i.e., Gold Bullion and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Gold Bullion and Lyxor UCITS
Assuming the 90 days trading horizon Gold Bullion Securities is expected to generate 0.51 times more return on investment than Lyxor UCITS. However, Gold Bullion Securities is 1.98 times less risky than Lyxor UCITS. It trades about 0.1 of its potential returns per unit of risk. Lyxor UCITS FTSE is currently generating about 0.02 per unit of risk. If you would invest 15,829 in Gold Bullion Securities on August 30, 2024 and sell it today you would earn a total of 7,138 from holding Gold Bullion Securities or generate 45.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.01% |
| Values | Daily Returns |
Gold Bullion Securities vs. Lyxor UCITS FTSE
Performance |
| Timeline |
| Gold Bullion Securities |
| Lyxor UCITS FTSE |
Gold Bullion and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bullion and Lyxor UCITS
The main advantage of trading using opposite Gold Bullion and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bullion position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Gold Bullion vs. Amundi Index Solutions | Gold Bullion vs. Multi Units Luxembourg | Gold Bullion vs. iShares Digital Entertainment | Gold Bullion vs. Amundi Index Solutions |
| Lyxor UCITS vs. Amundi FTSE EPRANAREIT | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor Index Fund |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |