Correlation Between DAX Index and Lyxor Fed
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By analyzing existing cross correlation between DAX Index and Lyxor Fed Funds, you can compare the effects of market volatilities on DAX Index and Lyxor Fed 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 DAX Index with a short position of Lyxor Fed. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Lyxor Fed.
Diversification Opportunities for DAX Index and Lyxor Fed
Very weak diversification
The 3 months correlation between DAX and Lyxor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Lyxor Fed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Fed Funds and DAX Index 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 DAX Index are associated (or correlated) with Lyxor Fed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Fed Funds has no effect on the direction of DAX Index i.e., DAX Index and Lyxor Fed go up and down completely randomly.
Pair Corralation between DAX Index and Lyxor Fed
Assuming the 90 days trading horizon DAX Index is expected to generate 1.91 times more return on investment than Lyxor Fed. However, DAX Index is 1.91 times more volatile than Lyxor Fed Funds. It trades about 0.08 of its potential returns per unit of risk. Lyxor Fed Funds is currently generating about 0.05 per unit of risk. If you would invest 1,430,663 in DAX Index on September 2, 2024 and sell it today you would earn a total of 531,982 from holding DAX Index or generate 37.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Lyxor Fed Funds
Performance |
| Timeline |
DAX Index and Lyxor Fed Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Lyxor Fed Funds
Pair trading matchups for Lyxor Fed
Pair Trading with DAX Index and Lyxor Fed
The main advantage of trading using opposite DAX Index and Lyxor Fed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Lyxor Fed 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 Fed will offset losses from the drop in Lyxor Fed's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC | Lyxor Fed vs. NMI Holdings | Lyxor Fed 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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