Correlation Between Lyxor UCITS and BNPP EHY
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and BNPP EHY 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 BNPP EHY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS Stoxx and BNPP EHY SRI, you can compare the effects of market volatilities on Lyxor UCITS and BNPP EHY 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 BNPP EHY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and BNPP EHY.
Diversification Opportunities for Lyxor UCITS and BNPP EHY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and BNPP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Stoxx and BNPP EHY SRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNPP EHY SRI 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 Stoxx are associated (or correlated) with BNPP EHY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNPP EHY SRI has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and BNPP EHY go up and down completely randomly.
Pair Corralation between Lyxor UCITS and BNPP EHY
Assuming the 90 days trading horizon Lyxor UCITS Stoxx is expected to generate 5.55 times more return on investment than BNPP EHY. However, Lyxor UCITS is 5.55 times more volatile than BNPP EHY SRI. It trades about 0.3 of its potential returns per unit of risk. BNPP EHY SRI is currently generating about 0.38 per unit of risk. If you would invest 5,134 in Lyxor UCITS Stoxx on September 13, 2024 and sell it today you would earn a total of 242.00 from holding Lyxor UCITS Stoxx or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Stoxx vs. BNPP EHY SRI
Performance |
| Timeline |
| Lyxor UCITS Stoxx |
| BNPP EHY SRI |
Lyxor UCITS and BNPP EHY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and BNPP EHY
The main advantage of trading using opposite Lyxor UCITS and BNPP EHY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, BNPP EHY 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 BNPP EHY will offset losses from the drop in BNPP EHY's long position.| Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Amundi CAC 40 | Lyxor UCITS vs. Gold Bullion Securities |
| BNPP EHY vs. Lyxor UCITS Japan | BNPP EHY vs. Lyxor UCITS Japan | BNPP EHY vs. Lyxor UCITS Stoxx | BNPP EHY vs. Amundi CAC 40 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |