Correlation Between IBEX 35 and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both IBEX 35 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 IBEX 35 and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBEX 35 Index and Lyxor UCITS MSCI, you can compare the effects of market volatilities on IBEX 35 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 IBEX 35 with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Lyxor UCITS.
Diversification Opportunities for IBEX 35 and Lyxor UCITS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IBEX and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 Index and Lyxor UCITS MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS MSCI and IBEX 35 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 IBEX 35 Index 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 MSCI has no effect on the direction of IBEX 35 i.e., IBEX 35 and Lyxor UCITS go up and down completely randomly.
Pair Corralation between IBEX 35 and Lyxor UCITS
If you would invest 940,640 in IBEX 35 Index on January 12, 2025 and sell it today you would earn a total of 287,960 from holding IBEX 35 Index or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IBEX 35 Index vs. Lyxor UCITS MSCI
Performance |
| Timeline |
IBEX 35 and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
IBEX 35 Index
Pair trading matchups for IBEX 35
Lyxor UCITS MSCI
Pair trading matchups for Lyxor UCITS
Pair Trading with IBEX 35 and Lyxor UCITS
The main advantage of trading using opposite IBEX 35 and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 35 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.| IBEX 35 vs. Arteche Lantegi Elkartea | IBEX 35 vs. Parlem Telecom Companyia | IBEX 35 vs. Vytrus Biotech SA | IBEX 35 vs. Media Investment Optimization |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |