Correlation Between Multi Units and Lyxor Nasdaq
Can any of the company-specific risk be diversified away by investing in both Multi Units and Lyxor Nasdaq 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 Multi Units and Lyxor Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units Luxembourg and Lyxor Nasdaq 100, you can compare the effects of market volatilities on Multi Units and Lyxor Nasdaq 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 Multi Units with a short position of Lyxor Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and Lyxor Nasdaq.
Diversification Opportunities for Multi Units and Lyxor Nasdaq
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multi and Lyxor is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg and Lyxor Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Nasdaq 100 and Multi Units 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 Multi Units Luxembourg are associated (or correlated) with Lyxor Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Nasdaq 100 has no effect on the direction of Multi Units i.e., Multi Units and Lyxor Nasdaq go up and down completely randomly.
Pair Corralation between Multi Units and Lyxor Nasdaq
Assuming the 90 days trading horizon Multi Units is expected to generate 4.81 times less return on investment than Lyxor Nasdaq. But when comparing it to its historical volatility, Multi Units Luxembourg is 1.61 times less risky than Lyxor Nasdaq. It trades about 0.04 of its potential returns per unit of risk. Lyxor Nasdaq 100 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,506 in Lyxor Nasdaq 100 on September 19, 2024 and sell it today you would earn a total of 10,194 from holding Lyxor Nasdaq 100 or generate 97.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.35% |
| Values | Daily Returns |
Multi Units Luxembourg vs. Lyxor Nasdaq 100
Performance |
| Timeline |
| Multi Units Luxembourg |
| Lyxor Nasdaq 100 |
Multi Units and Lyxor Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and Lyxor Nasdaq
The main advantage of trading using opposite Multi Units and Lyxor Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units position performs unexpectedly, Lyxor Nasdaq 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 Nasdaq will offset losses from the drop in Lyxor Nasdaq's long position.| Multi Units vs. Baloise Holding AG | Multi Units vs. 21Shares Polkadot ETP | Multi Units vs. UBS ETF MSCI | Multi Units vs. BB Biotech AG |
| Lyxor Nasdaq vs. Lyxor Japan UCITS | Lyxor Nasdaq vs. Lyxor Euro Government | Lyxor Nasdaq vs. Lyxor MSCI China |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |