Correlation Between Amundi Stoxx and Lyxor Treasury
Can any of the company-specific risk be diversified away by investing in both Amundi Stoxx and Lyxor Treasury 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 Stoxx and Lyxor Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Stoxx Europe and Lyxor Treasury 3 7Y, you can compare the effects of market volatilities on Amundi Stoxx and Lyxor Treasury 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 Stoxx with a short position of Lyxor Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Stoxx and Lyxor Treasury.
Diversification Opportunities for Amundi Stoxx and Lyxor Treasury
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Lyxor is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Stoxx Europe and Lyxor Treasury 3 7Y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Treasury 3 and Amundi Stoxx 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 Stoxx Europe are associated (or correlated) with Lyxor Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Treasury 3 has no effect on the direction of Amundi Stoxx i.e., Amundi Stoxx and Lyxor Treasury go up and down completely randomly.
Pair Corralation between Amundi Stoxx and Lyxor Treasury
If you would invest 24,777 in Amundi Stoxx Europe on November 28, 2024 and sell it today you would earn a total of 1,147 from holding Amundi Stoxx Europe or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amundi Stoxx Europe vs. Lyxor Treasury 3 7Y
Performance |
| Timeline |
| Amundi Stoxx Europe |
| Lyxor Treasury 3 |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Amundi Stoxx and Lyxor Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Stoxx and Lyxor Treasury
The main advantage of trading using opposite Amundi Stoxx and Lyxor Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Stoxx position performs unexpectedly, Lyxor Treasury 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 Treasury will offset losses from the drop in Lyxor Treasury's long position.| Amundi Stoxx vs. Amundi Index Solutions | Amundi Stoxx vs. iShares Core SP | Amundi Stoxx vs. iShares Core MSCI |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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