Correlation Between Lyxor UCITS and Lyxor 1
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By analyzing existing cross correlation between Lyxor UCITS EuroMTS and Lyxor 1 TecDAX, you can compare the effects of market volatilities on Lyxor UCITS and Lyxor 1 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 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Lyxor 1.
Diversification Opportunities for Lyxor UCITS and Lyxor 1
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Lyxor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS EuroMTS and Lyxor 1 TecDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 TecDAX 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 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 TecDAX has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Lyxor 1 go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Lyxor 1
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 3.76 times less return on investment than Lyxor 1. But when comparing it to its historical volatility, Lyxor UCITS EuroMTS is 14.35 times less risky than Lyxor 1. It trades about 0.52 of its potential returns per unit of risk. Lyxor 1 TecDAX is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,430 in Lyxor 1 TecDAX on September 2, 2024 and sell it today you would earn a total of 67.00 from holding Lyxor 1 TecDAX or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS EuroMTS vs. Lyxor 1 TecDAX
Performance |
| Timeline |
| Lyxor UCITS EuroMTS |
| Lyxor 1 TecDAX |
Lyxor UCITS and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Lyxor 1
The main advantage of trading using opposite Lyxor UCITS and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Lyxor 1 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 1 will offset losses from the drop in Lyxor 1'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 1 vs. Xtrackers Nikkei 225 | Lyxor 1 vs. iShares VII PLC | Lyxor 1 vs. NMI Holdings | Lyxor 1 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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