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 Global and Lyxor Core UK, 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
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lyxor and Lyxor is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Core Global and Lyxor Core UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Core UK 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 Global 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 UK 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 Global is expected to generate 1.11 times more return on investment than Lyxor Core. However, Lyxor Core is 1.11 times more volatile than Lyxor Core UK. It trades about 0.01 of its potential returns per unit of risk. Lyxor Core UK is currently generating about -0.01 per unit of risk. If you would invest 796.00 in Lyxor Core Global on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Lyxor Core Global or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Core Global vs. Lyxor Core UK
Performance |
| Timeline |
| Lyxor Core Global |
| Lyxor Core UK |
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. Lyxor UCITS EuroMTS | Lyxor Core vs. Lyxor Core UK | Lyxor Core vs. Lyxor UCITS iBoxx | Lyxor Core vs. Lyxor Treasury 3 7Y |
| Lyxor Core vs. GraniteShares 3x Short | Lyxor Core vs. WisdomTree Natural Gas | Lyxor Core vs. Leverage Shares 3x | Lyxor Core vs. WisdomTree Natural Gas |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |