Correlation Between IShares Global and LYXOR DAILY
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By analyzing existing cross correlation between iShares Global AAA AA and LYXOR DAILY SHORTDAX, you can compare the effects of market volatilities on IShares Global and LYXOR DAILY 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 IShares Global with a short position of LYXOR DAILY. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and LYXOR DAILY.
Diversification Opportunities for IShares Global and LYXOR DAILY
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and LYXOR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global AAA AA and LYXOR DAILY SHORTDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYXOR DAILY SHORTDAX and IShares Global 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 iShares Global AAA AA are associated (or correlated) with LYXOR DAILY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYXOR DAILY SHORTDAX has no effect on the direction of IShares Global i.e., IShares Global and LYXOR DAILY go up and down completely randomly.
Pair Corralation between IShares Global and LYXOR DAILY
Assuming the 90 days trading horizon iShares Global AAA AA is expected to generate 0.17 times more return on investment than LYXOR DAILY. However, iShares Global AAA AA is 5.97 times less risky than LYXOR DAILY. It trades about 0.38 of its potential returns per unit of risk. LYXOR DAILY SHORTDAX is currently generating about -0.46 per unit of risk. If you would invest 7,189 in iShares Global AAA AA on September 13, 2024 and sell it today you would earn a total of 131.00 from holding iShares Global AAA AA or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Global AAA AA vs. LYXOR DAILY SHORTDAX
Performance |
| Timeline |
| iShares Global AAA |
| LYXOR DAILY SHORTDAX |
IShares Global and LYXOR DAILY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and LYXOR DAILY
The main advantage of trading using opposite IShares Global and LYXOR DAILY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global position performs unexpectedly, LYXOR DAILY 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 DAILY will offset losses from the drop in LYXOR DAILY's long position.| IShares Global vs. UBS Fund Solutions | IShares Global vs. Xtrackers II | IShares Global vs. Xtrackers Nikkei 225 | IShares Global vs. iShares VII PLC |
| LYXOR DAILY vs. LYXOR EURO STOXX | LYXOR DAILY vs. LYXOR DAILY SHORTDAX | LYXOR DAILY vs. LYXOR EURO STOXX | LYXOR DAILY vs. LYXOR Index Fund |
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.
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