Correlation Between Lyxor UCITS and HAN GINS
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and HAN GINS 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 HAN GINS 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 HAN GINS Tech Megatrend, you can compare the effects of market volatilities on Lyxor UCITS and HAN GINS 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 HAN GINS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and HAN GINS.
Diversification Opportunities for Lyxor UCITS and HAN GINS
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and HAN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Stoxx and HAN GINS Tech Megatrend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAN GINS Tech 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 HAN GINS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAN GINS Tech has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and HAN GINS go up and down completely randomly.
Pair Corralation between Lyxor UCITS and HAN GINS
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 11.43 times less return on investment than HAN GINS. But when comparing it to its historical volatility, Lyxor UCITS Stoxx is 1.73 times less risky than HAN GINS. It trades about 0.02 of its potential returns per unit of risk. HAN GINS Tech Megatrend is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,219 in HAN GINS Tech Megatrend on September 19, 2024 and sell it today you would earn a total of 278.00 from holding HAN GINS Tech Megatrend or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Stoxx vs. HAN GINS Tech Megatrend
Performance |
| Timeline |
| Lyxor UCITS Stoxx |
| HAN GINS Tech |
Lyxor UCITS and HAN GINS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and HAN GINS
The main advantage of trading using opposite Lyxor UCITS and HAN GINS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, HAN GINS 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 HAN GINS will offset losses from the drop in HAN GINS's long position.| Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Lyxor UCITS Japan | Lyxor UCITS vs. Gold Bullion Securities | Lyxor UCITS vs. SSgA SPDR ETFs |
| HAN GINS vs. Lyxor UCITS Japan | HAN GINS vs. Lyxor UCITS Japan | HAN GINS vs. Lyxor UCITS Stoxx | HAN GINS 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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