Correlation Between Lyxor Japan and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both Lyxor Japan and SPDR Bloomberg 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 Japan and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Japan UCITS and SPDR Bloomberg 1 3, you can compare the effects of market volatilities on Lyxor Japan and SPDR Bloomberg 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 Japan with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Japan and SPDR Bloomberg.
Diversification Opportunities for Lyxor Japan and SPDR Bloomberg
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lyxor and SPDR is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Japan UCITS and SPDR Bloomberg 1 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 and Lyxor Japan 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 Japan UCITS are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg 1 has no effect on the direction of Lyxor Japan i.e., Lyxor Japan and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between Lyxor Japan and SPDR Bloomberg
Assuming the 90 days trading horizon Lyxor Japan UCITS is expected to generate 1.34 times more return on investment than SPDR Bloomberg. However, Lyxor Japan is 1.34 times more volatile than SPDR Bloomberg 1 3. It trades about 0.06 of its potential returns per unit of risk. SPDR Bloomberg 1 3 is currently generating about 0.02 per unit of risk. If you would invest 1,873,937 in Lyxor Japan UCITS on October 21, 2024 and sell it today you would earn a total of 703,563 from holding Lyxor Japan UCITS or generate 37.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Lyxor Japan UCITS vs. SPDR Bloomberg 1 3
Performance |
| Timeline |
| Lyxor Japan UCITS |
| SPDR Bloomberg 1 |
Lyxor Japan and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Japan and SPDR Bloomberg
The main advantage of trading using opposite Lyxor Japan and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Japan position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| Lyxor Japan vs. UBSFund Solutions MSCI | Lyxor Japan vs. Vanguard SP 500 | Lyxor Japan vs. iShares Core SP | Lyxor Japan vs. iShares Core MSCI |
| SPDR Bloomberg vs. UBSFund Solutions MSCI | SPDR Bloomberg vs. Vanguard SP 500 | SPDR Bloomberg vs. iShares Core SP | SPDR Bloomberg vs. Lyxor Japan UCITS |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |