Correlation Between Lyxor Core and Lyxor Core
Can any of the company-specific risk be diversified away by investing in both Lyxor Core and Lyxor Core 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 Core and Lyxor Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Core UK and Lyxor Core Equity, you can compare the effects of market volatilities on Lyxor Core and Lyxor Core 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 Core with a short position of Lyxor Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Core and Lyxor Core.
Diversification Opportunities for Lyxor Core and Lyxor Core
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Lyxor is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Core UK and Lyxor Core Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Core Equity and Lyxor Core 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 Core UK are associated (or correlated) with Lyxor Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Core Equity has no effect on the direction of Lyxor Core i.e., Lyxor Core and Lyxor Core go up and down completely randomly.
Pair Corralation between Lyxor Core and Lyxor Core
Assuming the 90 days trading horizon Lyxor Core is expected to generate 26.78 times less return on investment than Lyxor Core. But when comparing it to its historical volatility, Lyxor Core UK is 1.03 times less risky than Lyxor Core. It trades about 0.01 of its potential returns per unit of risk. Lyxor Core Equity is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,523 in Lyxor Core Equity on September 1, 2024 and sell it today you would earn a total of 666.00 from holding Lyxor Core Equity or generate 43.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Lyxor Core UK vs. Lyxor Core Equity
Performance |
| Timeline |
| Lyxor Core UK |
| Lyxor Core Equity |
Lyxor Core and Lyxor Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Core and Lyxor Core
The main advantage of trading using opposite Lyxor Core and Lyxor Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Core position performs unexpectedly, Lyxor Core 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 Core will offset losses from the drop in Lyxor Core's long position.| Lyxor Core vs. GraniteShares 3x Short | Lyxor Core vs. WisdomTree Natural Gas | Lyxor Core vs. Leverage Shares 3x | Lyxor Core vs. WisdomTree Natural Gas |
| Lyxor Core vs. Lyxor Smart Overnight | Lyxor Core vs. Lyxor UCITS EuroMTS | Lyxor Core vs. Lyxor Core UK | Lyxor Core vs. Lyxor Core Global |
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.
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