Correlation Between Lyxor BofAML and Lyxor UCITS
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By analyzing existing cross correlation between Lyxor BofAML USD and Lyxor UCITS EuroMTS, you can compare the effects of market volatilities on Lyxor BofAML and Lyxor UCITS 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 BofAML with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor BofAML and Lyxor UCITS.
Diversification Opportunities for Lyxor BofAML and Lyxor UCITS
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Lyxor is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor BofAML USD and Lyxor UCITS EuroMTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS EuroMTS and Lyxor BofAML 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 BofAML USD are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS EuroMTS has no effect on the direction of Lyxor BofAML i.e., Lyxor BofAML and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Lyxor BofAML and Lyxor UCITS
Assuming the 90 days trading horizon Lyxor BofAML USD is expected to generate 3.99 times more return on investment than Lyxor UCITS. However, Lyxor BofAML is 3.99 times more volatile than Lyxor UCITS EuroMTS. It trades about 0.15 of its potential returns per unit of risk. Lyxor UCITS EuroMTS is currently generating about 0.44 per unit of risk. If you would invest 7,596 in Lyxor BofAML USD on August 31, 2024 and sell it today you would earn a total of 67.00 from holding Lyxor BofAML USD or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor BofAML USD vs. Lyxor UCITS EuroMTS
Performance |
| Timeline |
| Lyxor BofAML USD |
| Lyxor UCITS EuroMTS |
Lyxor BofAML and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor BofAML and Lyxor UCITS
The main advantage of trading using opposite Lyxor BofAML and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor BofAML position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Lyxor BofAML vs. UBS Fund Solutions | Lyxor BofAML vs. Xtrackers II | Lyxor BofAML vs. Xtrackers Nikkei 225 | Lyxor BofAML vs. iShares VII PLC |
| Lyxor UCITS vs. Lyxor Fed Funds | Lyxor UCITS vs. Lyxor BofAML USD | Lyxor UCITS vs. Lyxor 1 TecDAX | Lyxor UCITS vs. Lyxor TIPS DR |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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