Correlation Between Lyxor UCITS and Ossiam Lux
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Ossiam Lux 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 Ossiam Lux 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 Ossiam Lux Ossiam, you can compare the effects of market volatilities on Lyxor UCITS and Ossiam Lux 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 Ossiam Lux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Ossiam Lux.
Diversification Opportunities for Lyxor UCITS and Ossiam Lux
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lyxor and Ossiam is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Stoxx and Ossiam Lux Ossiam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ossiam Lux Ossiam 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 Ossiam Lux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ossiam Lux Ossiam has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Ossiam Lux go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Ossiam Lux
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 1.5 times less return on investment than Ossiam Lux. But when comparing it to its historical volatility, Lyxor UCITS Stoxx is 1.15 times less risky than Ossiam Lux. It trades about 0.05 of its potential returns per unit of risk. Ossiam Lux Ossiam is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 12,614 in Ossiam Lux Ossiam on September 4, 2024 and sell it today you would earn a total of 2,083 from holding Ossiam Lux Ossiam or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Stoxx vs. Ossiam Lux Ossiam
Performance |
| Timeline |
| Lyxor UCITS Stoxx |
| Ossiam Lux Ossiam |
Lyxor UCITS and Ossiam Lux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Ossiam Lux
The main advantage of trading using opposite Lyxor UCITS and Ossiam Lux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Ossiam Lux 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 Ossiam Lux will offset losses from the drop in Ossiam Lux's long position.| Lyxor UCITS vs. Lyxor Index Fund | Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Lyxor UCITS MSCI | Lyxor UCITS vs. Multi Units France |
| Ossiam Lux vs. Lyxor UCITS Japan | Ossiam Lux vs. Lyxor UCITS Japan | Ossiam Lux vs. Lyxor UCITS Stoxx | Ossiam Lux 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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