Correlation Between Lyxor Index and Lyxor Fed
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By analyzing existing cross correlation between Lyxor Index Fund and Lyxor Fed Funds, you can compare the effects of market volatilities on Lyxor Index and Lyxor Fed 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 Index with a short position of Lyxor Fed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Lyxor Fed.
Diversification Opportunities for Lyxor Index and Lyxor Fed
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Lyxor is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Lyxor Fed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Fed Funds and Lyxor Index 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 Index Fund are associated (or correlated) with Lyxor Fed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Fed Funds has no effect on the direction of Lyxor Index i.e., Lyxor Index and Lyxor Fed go up and down completely randomly.
Pair Corralation between Lyxor Index and Lyxor Fed
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 2.28 times more return on investment than Lyxor Fed. However, Lyxor Index is 2.28 times more volatile than Lyxor Fed Funds. It trades about 0.07 of its potential returns per unit of risk. Lyxor Fed Funds is currently generating about 0.05 per unit of risk. If you would invest 8,257 in Lyxor Index Fund on September 2, 2024 and sell it today you would earn a total of 3,027 from holding Lyxor Index Fund or generate 36.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Lyxor Index Fund vs. Lyxor Fed Funds
Performance |
| Timeline |
| Lyxor Index Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Lyxor Fed Funds |
Lyxor Index and Lyxor Fed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Lyxor Fed
The main advantage of trading using opposite Lyxor Index and Lyxor Fed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Lyxor Fed 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 Fed will offset losses from the drop in Lyxor Fed's long position.| Lyxor Index vs. UBS Fund Solutions | Lyxor Index vs. Vanguard Funds Public | Lyxor Index vs. iShares Core SP | Lyxor Index vs. iShares Core MSCI |
| Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC | Lyxor Fed vs. NMI Holdings | Lyxor Fed vs. SIVERS SEMICONDUCTORS AB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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