Correlation Between Lyxor 10Y and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and GraniteShares 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 GraniteShares 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 GraniteShares 3x Short, you can compare the effects of market volatilities on Lyxor 10Y and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and GraniteShares.
Diversification Opportunities for Lyxor 10Y and GraniteShares
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and GraniteShares is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Inflation and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and GraniteShares go up and down completely randomly.
Pair Corralation between Lyxor 10Y and GraniteShares
Assuming the 90 days trading horizon Lyxor 10Y Inflation is expected to generate 0.03 times more return on investment than GraniteShares. However, Lyxor 10Y Inflation is 31.12 times less risky than GraniteShares. It trades about 0.12 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.1 per unit of risk. If you would invest 13,049 in Lyxor 10Y Inflation on August 24, 2024 and sell it today you would earn a total of 83.00 from holding Lyxor 10Y Inflation or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 10Y Inflation vs. GraniteShares 3x Short
Performance |
| Timeline |
| Lyxor 10Y Inflation |
| GraniteShares 3x Short |
Lyxor 10Y and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and GraniteShares
The main advantage of trading using opposite Lyxor 10Y and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| Lyxor 10Y vs. Leverage Shares 3x | Lyxor 10Y vs. Leverage Shares 3x | Lyxor 10Y vs. Leverage Shares 3x | Lyxor 10Y vs. WisdomTree Short GBP |
| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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