Correlation Between Lyxor UCITS and Atrys Health
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Atrys Health 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 UCITS and Atrys Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS Ibex35 and Atrys Health SL, you can compare the effects of market volatilities on Lyxor UCITS and Atrys Health 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 Atrys Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Atrys Health.
Diversification Opportunities for Lyxor UCITS and Atrys Health
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lyxor and Atrys is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Ibex35 and Atrys Health SL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrys Health SL 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 Ibex35 are associated (or correlated) with Atrys Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrys Health SL has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Atrys Health go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Atrys Health
Assuming the 90 days trading horizon Lyxor UCITS Ibex35 is expected to generate 0.71 times more return on investment than Atrys Health. However, Lyxor UCITS Ibex35 is 1.4 times less risky than Atrys Health. It trades about 0.5 of its potential returns per unit of risk. Atrys Health SL is currently generating about 0.0 per unit of risk. If you would invest 12,352 in Lyxor UCITS Ibex35 on November 29, 2024 and sell it today you would earn a total of 1,264 from holding Lyxor UCITS Ibex35 or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Ibex35 vs. Atrys Health SL
Performance |
| Timeline |
| Lyxor UCITS Ibex35 |
| Atrys Health SL |
Lyxor UCITS and Atrys Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Atrys Health
The main advantage of trading using opposite Lyxor UCITS and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Atrys Health 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 Atrys Health will offset losses from the drop in Atrys Health's long position.The idea behind Lyxor UCITS Ibex35 and Atrys Health SL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Atrys Health vs. Gigas Hosting SA | Atrys Health vs. Grenergy Renovables SA | Atrys Health vs. Agile Content SA | Atrys Health vs. Global Dominion Access |
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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