Correlation Between Lyxor UCITS and Hashdex Crypto
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Hashdex Crypto 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 Hashdex Crypto 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 Hashdex Crypto Momentum, you can compare the effects of market volatilities on Lyxor UCITS and Hashdex Crypto 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 Hashdex Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Hashdex Crypto.
Diversification Opportunities for Lyxor UCITS and Hashdex Crypto
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Hashdex is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Japan and Hashdex Crypto Momentum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashdex Crypto Momentum 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 Hashdex Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashdex Crypto Momentum has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Hashdex Crypto go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Hashdex Crypto
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 17.82 times less return on investment than Hashdex Crypto. But when comparing it to its historical volatility, Lyxor UCITS Japan is 4.68 times less risky than Hashdex Crypto. It trades about 0.05 of its potential returns per unit of risk. Hashdex Crypto Momentum is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,537 in Hashdex Crypto Momentum on November 2, 2024 and sell it today you would earn a total of 5,759 from holding Hashdex Crypto Momentum or generate 104.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Japan vs. Hashdex Crypto Momentum
Performance |
| Timeline |
| Lyxor UCITS Japan |
| Hashdex Crypto Momentum |
Lyxor UCITS and Hashdex Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Hashdex Crypto
The main advantage of trading using opposite Lyxor UCITS and Hashdex Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Hashdex Crypto 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 Hashdex Crypto will offset losses from the drop in Hashdex Crypto's long position.| Lyxor UCITS vs. Lyxor MSCI China | Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Multi Units Luxembourg | Lyxor UCITS vs. Lyxor MSCI Brazil |
| Hashdex Crypto vs. Amundi Index Solutions | Hashdex Crypto vs. Multi Units Luxembourg | Hashdex Crypto vs. iShares Digital Entertainment | Hashdex Crypto vs. Amundi Index Solutions |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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