Correlation Between Lyxor 10Y and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Access, you can compare the effects of market volatilities on Lyxor 10Y and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and Goldman Sachs.
Diversification Opportunities for Lyxor 10Y and Goldman Sachs
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Goldman is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Inflation and Goldman Sachs Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Access 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Access has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and Goldman Sachs go up and down completely randomly.
Pair Corralation between Lyxor 10Y and Goldman Sachs
Assuming the 90 days trading horizon Lyxor 10Y Inflation is expected to generate 0.64 times more return on investment than Goldman Sachs. However, Lyxor 10Y Inflation is 1.57 times less risky than Goldman Sachs. It trades about 0.0 of its potential returns per unit of risk. Goldman Sachs Access is currently generating about -0.14 per unit of risk. If you would invest 13,281 in Lyxor 10Y Inflation on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Lyxor 10Y Inflation or generate 0.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 10Y Inflation vs. Goldman Sachs Access
Performance |
| Timeline |
| Lyxor 10Y Inflation |
| Goldman Sachs Access |
Lyxor 10Y and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and Goldman Sachs
The main advantage of trading using opposite Lyxor 10Y and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Goldman Sachs Access | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs Access |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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