Correlation Between Lyxor 10Y and Boost Issuer
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and Boost Issuer 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 10Y and Boost Issuer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 10Y Inflation and Boost Issuer Public, you can compare the effects of market volatilities on Lyxor 10Y and Boost Issuer 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 10Y with a short position of Boost Issuer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and Boost Issuer.
Diversification Opportunities for Lyxor 10Y and Boost Issuer
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Boost is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Inflation and Boost Issuer Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boost Issuer Public and Lyxor 10Y 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 10Y Inflation are associated (or correlated) with Boost Issuer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boost Issuer Public has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and Boost Issuer go up and down completely randomly.
Pair Corralation between Lyxor 10Y and Boost Issuer
Assuming the 90 days trading horizon Lyxor 10Y Inflation is expected to generate 0.04 times more return on investment than Boost Issuer. However, Lyxor 10Y Inflation is 23.21 times less risky than Boost Issuer. It trades about 0.1 of its potential returns per unit of risk. Boost Issuer Public is currently generating about -0.01 per unit of risk. If you would invest 12,165 in Lyxor 10Y Inflation on September 12, 2024 and sell it today you would earn a total of 910.00 from holding Lyxor 10Y Inflation or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Lyxor 10Y Inflation vs. Boost Issuer Public
Performance |
| Timeline |
| Lyxor 10Y Inflation |
| Boost Issuer Public |
Lyxor 10Y and Boost Issuer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and Boost Issuer
The main advantage of trading using opposite Lyxor 10Y and Boost Issuer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, Boost Issuer 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 Boost Issuer will offset losses from the drop in Boost Issuer's long position.| Lyxor 10Y vs. Lyxor Smart Overnight | Lyxor 10Y vs. Lyxor UCITS EuroMTS | Lyxor 10Y vs. Lyxor Core UK | Lyxor 10Y 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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