Correlation Between Amundi FTSE and Lyxor Nasdaq
Can any of the company-specific risk be diversified away by investing in both Amundi FTSE 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 Amundi FTSE and Lyxor Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi FTSE EPRANAREIT and Lyxor Nasdaq 100, you can compare the effects of market volatilities on Amundi FTSE 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 Amundi FTSE with a short position of Lyxor Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi FTSE and Lyxor Nasdaq.
Diversification Opportunities for Amundi FTSE and Lyxor Nasdaq
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Lyxor is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amundi FTSE EPRANAREIT 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT 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 Amundi FTSE i.e., Amundi FTSE and Lyxor Nasdaq go up and down completely randomly.
Pair Corralation between Amundi FTSE and Lyxor Nasdaq
Assuming the 90 days trading horizon Amundi FTSE EPRANAREIT is expected to generate 6.24 times more return on investment than Lyxor Nasdaq. However, Amundi FTSE is 6.24 times more volatile than Lyxor Nasdaq 100. It trades about 0.05 of its potential returns per unit of risk. Lyxor Nasdaq 100 is currently generating about 0.12 per unit of risk. If you would invest 1,789 in Amundi FTSE EPRANAREIT on September 19, 2024 and sell it today you would earn a total of 2,574 from holding Amundi FTSE EPRANAREIT or generate 143.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.64% |
| Values | Daily Returns |
Amundi FTSE EPRANAREIT vs. Lyxor Nasdaq 100
Performance |
| Timeline |
| Amundi FTSE EPRANAREIT |
| Lyxor Nasdaq 100 |
Amundi FTSE and Lyxor Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi FTSE and Lyxor Nasdaq
The main advantage of trading using opposite Amundi FTSE and Lyxor Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi FTSE 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.| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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