Correlation Between Lyxor UCITS and Lyxor Fed
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By analyzing existing cross correlation between Lyxor UCITS EuroMTS and Lyxor Fed Funds, you can compare the effects of market volatilities on Lyxor UCITS and Lyxor Fed 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 Lyxor Fed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Lyxor Fed.
Diversification Opportunities for Lyxor UCITS and Lyxor Fed
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Lyxor is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS EuroMTS and Lyxor Fed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Fed Funds 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 EuroMTS are associated (or correlated) with Lyxor Fed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Fed Funds has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Lyxor Fed go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Lyxor Fed
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 1.89 times less return on investment than Lyxor Fed. But when comparing it to its historical volatility, Lyxor UCITS EuroMTS is 4.57 times less risky than Lyxor Fed. It trades about 0.16 of its potential returns per unit of risk. Lyxor Fed Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,327 in Lyxor Fed Funds on August 31, 2024 and sell it today you would earn a total of 965.00 from holding Lyxor Fed Funds or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Lyxor UCITS EuroMTS vs. Lyxor Fed Funds
Performance |
| Timeline |
| Lyxor UCITS EuroMTS |
| Lyxor Fed Funds |
Lyxor UCITS and Lyxor Fed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Lyxor Fed
The main advantage of trading using opposite Lyxor UCITS and Lyxor Fed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Lyxor Fed 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 Fed will offset losses from the drop in Lyxor Fed's long position.| Lyxor UCITS vs. Lyxor Fed Funds | Lyxor UCITS vs. Lyxor BofAML USD | Lyxor UCITS vs. Lyxor 1 TecDAX | Lyxor UCITS vs. Lyxor TIPS DR |
| Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC | Lyxor Fed vs. NMI Holdings | Lyxor Fed vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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