Correlation Between Lyxor Index and Lyxor 1
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By analyzing existing cross correlation between Lyxor Index Fund and Lyxor 1 TecDAX, you can compare the effects of market volatilities on Lyxor Index and Lyxor 1 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 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Lyxor 1.
Diversification Opportunities for Lyxor Index and Lyxor 1
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Lyxor 1 TecDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 TecDAX 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 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 TecDAX has no effect on the direction of Lyxor Index i.e., Lyxor Index and Lyxor 1 go up and down completely randomly.
Pair Corralation between Lyxor Index and Lyxor 1
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 1.0 times more return on investment than Lyxor 1. However, Lyxor Index is 1.0 times more volatile than Lyxor 1 TecDAX. It trades about 0.07 of its potential returns per unit of risk. Lyxor 1 TecDAX is currently generating about 0.03 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 | Weak |
| Accuracy | 97.83% |
| Values | Daily Returns |
Lyxor Index Fund vs. Lyxor 1 TecDAX
Performance |
| Timeline |
| Lyxor Index Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Lyxor 1 TecDAX |
Lyxor Index and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Lyxor 1
The main advantage of trading using opposite Lyxor Index and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Lyxor 1 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 1 will offset losses from the drop in Lyxor 1'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 1 vs. Xtrackers Nikkei 225 | Lyxor 1 vs. iShares VII PLC | Lyxor 1 vs. NMI Holdings | Lyxor 1 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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