Correlation Between Lyxor UCITS and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Ossiam Lux 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 Lux 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 Lux Ossiam, you can compare the effects of market volatilities on Lyxor UCITS and Ossiam Lux 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 Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Ossiam Lux.
Diversification Opportunities for Lyxor UCITS and Ossiam Lux
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Ossiam is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Japan and Ossiam Lux Ossiam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux Ossiam 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 Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Lux Ossiam has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Ossiam Lux go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Ossiam Lux
Assuming the 90 days trading horizon Lyxor UCITS Japan is expected to generate 1.32 times more return on investment than Ossiam Lux. However, Lyxor UCITS is 1.32 times more volatile than Ossiam Lux Ossiam. It trades about 0.06 of its potential returns per unit of risk. Ossiam Lux Ossiam is currently generating about 0.07 per unit of risk. If you would invest 18,392 in Lyxor UCITS Japan on September 4, 2024 and sell it today you would earn a total of 3,753 from holding Lyxor UCITS Japan or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Japan vs. Ossiam Lux Ossiam
Performance |
| Timeline |
| Lyxor UCITS Japan |
| Ossiam Lux Ossiam |
Lyxor UCITS and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Ossiam Lux
The main advantage of trading using opposite Lyxor UCITS and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Ossiam Lux 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 Lux will offset losses from the drop in Ossiam Lux's long position.| Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions |
| Ossiam Lux vs. Lyxor UCITS Japan | Ossiam Lux vs. Lyxor UCITS Japan | Ossiam Lux vs. Lyxor UCITS Stoxx | Ossiam Lux 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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