Correlation Between Lyxor Euro and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Lyxor Euro and Banque Cantonale 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 Euro and Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Euro Stoxx and Banque Cantonale du, you can compare the effects of market volatilities on Lyxor Euro and Banque Cantonale 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 Euro with a short position of Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Euro and Banque Cantonale.
Diversification Opportunities for Lyxor Euro and Banque Cantonale
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Banque is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Euro Stoxx and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale and Lyxor Euro 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 Euro Stoxx are associated (or correlated) with Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Lyxor Euro i.e., Lyxor Euro and Banque Cantonale go up and down completely randomly.
Pair Corralation between Lyxor Euro and Banque Cantonale
Assuming the 90 days trading horizon Lyxor Euro Stoxx is expected to generate 3.62 times more return on investment than Banque Cantonale. However, Lyxor Euro is 3.62 times more volatile than Banque Cantonale du. It trades about 0.01 of its potential returns per unit of risk. Banque Cantonale du is currently generating about -0.05 per unit of risk. If you would invest 5,323 in Lyxor Euro Stoxx on September 19, 2024 and sell it today you would lose (31.00) from holding Lyxor Euro Stoxx or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Euro Stoxx vs. Banque Cantonale du
Performance |
| Timeline |
| Lyxor Euro Stoxx |
| Banque Cantonale |
Lyxor Euro and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Euro and Banque Cantonale
The main advantage of trading using opposite Lyxor Euro and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Euro position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.| Lyxor Euro vs. Baloise Holding AG | Lyxor Euro vs. 21Shares Polkadot ETP | Lyxor Euro vs. UBS ETF MSCI | Lyxor Euro vs. BB Biotech AG |
| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Banque Cantonale de |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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