Correlation Between Lyxor UCITS and IShares ATX
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and IShares ATX 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 IShares ATX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS ETF and iShares ATX UCITS, you can compare the effects of market volatilities on Lyxor UCITS and IShares ATX 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 IShares ATX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and IShares ATX.
Diversification Opportunities for Lyxor UCITS and IShares ATX
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and IShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS ETF and iShares ATX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ATX UCITS 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 ETF are associated (or correlated) with IShares ATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ATX UCITS has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and IShares ATX go up and down completely randomly.
Pair Corralation between Lyxor UCITS and IShares ATX
Assuming the 90 days trading horizon Lyxor UCITS ETF is expected to generate 0.88 times more return on investment than IShares ATX. However, Lyxor UCITS ETF is 1.13 times less risky than IShares ATX. It trades about 0.15 of its potential returns per unit of risk. iShares ATX UCITS is currently generating about -0.06 per unit of risk. If you would invest 36,150 in Lyxor UCITS ETF on August 26, 2024 and sell it today you would earn a total of 6,835 from holding Lyxor UCITS ETF or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS ETF vs. iShares ATX UCITS
Performance |
| Timeline |
| Lyxor UCITS ETF |
| iShares ATX UCITS |
Lyxor UCITS and IShares ATX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and IShares ATX
The main advantage of trading using opposite Lyxor UCITS and IShares ATX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, IShares ATX 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 IShares ATX will offset losses from the drop in IShares ATX's long position.| Lyxor UCITS vs. iShares Core DAX | Lyxor UCITS vs. iShares ATX UCITS | Lyxor UCITS vs. RATH Aktiengesellschaft | Lyxor UCITS vs. AT S Austria |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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