Correlation Between Lyxor 10Y and HSBC ETFs
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and HSBC ETFs 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 HSBC ETFs 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 HSBC ETFs Public, you can compare the effects of market volatilities on Lyxor 10Y and HSBC ETFs 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 HSBC ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and HSBC ETFs.
Diversification Opportunities for Lyxor 10Y and HSBC ETFs
Almost no diversification
The 3 months correlation between Lyxor and HSBC is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Inflation and HSBC ETFs Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC ETFs 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 HSBC ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC ETFs Public has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and HSBC ETFs go up and down completely randomly.
Pair Corralation between Lyxor 10Y and HSBC ETFs
Assuming the 90 days trading horizon Lyxor 10Y Inflation is expected to under-perform the HSBC ETFs. But the etf apears to be less risky and, when comparing its historical volatility, Lyxor 10Y Inflation is 2.91 times less risky than HSBC ETFs. The etf trades about 0.0 of its potential returns per unit of risk. The HSBC ETFs Public is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 5,529 in HSBC ETFs Public on September 3, 2024 and sell it today you would earn a total of 324.00 from holding HSBC ETFs Public or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 10Y Inflation vs. HSBC ETFs Public
Performance |
| Timeline |
| Lyxor 10Y Inflation |
| HSBC ETFs Public |
Lyxor 10Y and HSBC ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 10Y and HSBC ETFs
The main advantage of trading using opposite Lyxor 10Y and HSBC ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, HSBC ETFs 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 HSBC ETFs will offset losses from the drop in HSBC ETFs' 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 |
| HSBC ETFs vs. HSBC FTSE EPRA | HSBC ETFs vs. HSBC SP 500 | HSBC ETFs vs. HSBC MSCI Emerging | HSBC ETFs vs. HSBC NASDAQ 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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