Correlation Between Lyxor UCITS and Ossiam Bloomberg
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Ossiam Bloomberg 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 Ossiam Bloomberg 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 Ossiam Bloomberg USA, you can compare the effects of market volatilities on Lyxor UCITS and Ossiam Bloomberg 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 Ossiam Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Ossiam Bloomberg.
Diversification Opportunities for Lyxor UCITS and Ossiam Bloomberg
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lyxor and Ossiam is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Japan and Ossiam Bloomberg USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Bloomberg USA 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 Ossiam Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Bloomberg USA has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Ossiam Bloomberg go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Ossiam Bloomberg
Assuming the 90 days trading horizon Lyxor UCITS Japan is expected to generate 0.98 times more return on investment than Ossiam Bloomberg. However, Lyxor UCITS Japan is 1.02 times less risky than Ossiam Bloomberg. It trades about 0.27 of its potential returns per unit of risk. Ossiam Bloomberg USA is currently generating about 0.22 per unit of risk. If you would invest 15,825 in Lyxor UCITS Japan on September 2, 2024 and sell it today you would earn a total of 745.00 from holding Lyxor UCITS Japan or generate 4.71% 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. Ossiam Bloomberg USA
Performance |
| Timeline |
| Lyxor UCITS Japan |
| Ossiam Bloomberg USA |
Lyxor UCITS and Ossiam Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Ossiam Bloomberg
The main advantage of trading using opposite Lyxor UCITS and Ossiam Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Ossiam Bloomberg 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 Ossiam Bloomberg will offset losses from the drop in Ossiam Bloomberg's long position.| Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Granite 3x LVMH | Lyxor UCITS vs. 21Shares Polkadot ETP | Lyxor UCITS vs. Ekinops SA |
| Ossiam Bloomberg vs. Lyxor UCITS Japan | Ossiam Bloomberg vs. Lyxor UCITS Japan | Ossiam Bloomberg vs. Lyxor UCITS Stoxx | Ossiam Bloomberg vs. Amundi CAC 40 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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