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
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lyxor and Lyxor is 0.28. 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 is expected to generate 1.24 times less return on investment than Lyxor 1. But when comparing it to its historical volatility, Lyxor Index Fund is 1.1 times less risky than Lyxor 1. It trades about 0.06 of its potential returns per unit of risk. Lyxor 1 TecDAX is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,443 in Lyxor 1 TecDAX on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Lyxor 1 TecDAX or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.64% |
| 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. Lyxor Fed Funds | Lyxor Index vs. Lyxor BofAML USD | Lyxor Index vs. Lyxor 1 TecDAX | Lyxor Index vs. Lyxor UCITS EuroMTS |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor UCITS EuroMTS | Lyxor 1 vs. Lyxor TIPS DR |
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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