Correlation Between Lyxor UCITS and Amundi PEA
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Amundi PEA 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 UCITS and Amundi PEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS Japan and Amundi PEA Eau, you can compare the effects of market volatilities on Lyxor UCITS and Amundi PEA 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 UCITS with a short position of Amundi PEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Amundi PEA.
Diversification Opportunities for Lyxor UCITS and Amundi PEA
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lyxor and Amundi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Japan and Amundi PEA Eau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi PEA Eau and Lyxor UCITS 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 UCITS Japan are associated (or correlated) with Amundi PEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi PEA Eau has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Amundi PEA go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Amundi PEA
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 1.29 times less return on investment than Amundi PEA. But when comparing it to its historical volatility, Lyxor UCITS Japan is 1.5 times less risky than Amundi PEA. It trades about 0.19 of its potential returns per unit of risk. Amundi PEA Eau is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,090 in Amundi PEA Eau on August 29, 2024 and sell it today you would earn a total of 135.00 from holding Amundi PEA Eau or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Japan vs. Amundi PEA Eau
Performance |
| Timeline |
| Lyxor UCITS Japan |
| Amundi PEA Eau |
Lyxor UCITS and Amundi PEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Amundi PEA
The main advantage of trading using opposite Lyxor UCITS and Amundi PEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Amundi PEA 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 Amundi PEA will offset losses from the drop in Amundi PEA's long position.| Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Ossiam Minimum Variance | Lyxor UCITS vs. Ekinops SA |
| Amundi PEA vs. Amundi Index Solutions | Amundi PEA vs. Amundi Index Solutions | Amundi PEA vs. Amundi Index Solutions | Amundi PEA vs. Amundi SP 500 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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