Correlation Between Ossiam Minimum and Lyxor SP
Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum and Lyxor SP 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 Ossiam Minimum and Lyxor SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ossiam Minimum Variance and Lyxor SP 500, you can compare the effects of market volatilities on Ossiam Minimum and Lyxor SP 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 Ossiam Minimum with a short position of Lyxor SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and Lyxor SP.
Diversification Opportunities for Ossiam Minimum and Lyxor SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ossiam and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Minimum Variance and Lyxor SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor SP 500 and Ossiam Minimum 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 Ossiam Minimum Variance are associated (or correlated) with Lyxor SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor SP 500 has no effect on the direction of Ossiam Minimum i.e., Ossiam Minimum and Lyxor SP go up and down completely randomly.
Pair Corralation between Ossiam Minimum and Lyxor SP
Assuming the 90 days trading horizon Ossiam Minimum Variance is expected to generate 0.18 times more return on investment than Lyxor SP. However, Ossiam Minimum Variance is 5.69 times less risky than Lyxor SP. It trades about -0.04 of its potential returns per unit of risk. Lyxor SP 500 is currently generating about -0.05 per unit of risk. If you would invest 28,029 in Ossiam Minimum Variance on September 3, 2024 and sell it today you would lose (1,833) from holding Ossiam Minimum Variance or give up 6.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ossiam Minimum Variance vs. Lyxor SP 500
Performance |
| Timeline |
| Ossiam Minimum Variance |
| Lyxor SP 500 |
Ossiam Minimum and Lyxor SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam Minimum and Lyxor SP
The main advantage of trading using opposite Ossiam Minimum and Lyxor SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Minimum position performs unexpectedly, Lyxor SP 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 SP will offset losses from the drop in Lyxor SP's long position.| Ossiam Minimum vs. Ossiam Lux Ossiam | Ossiam Minimum vs. Ossiam Europe ESG | Ossiam Minimum vs. Ossiam Lux | Ossiam Minimum vs. Ossiam Shiller Barclays |
| Lyxor SP vs. Amundi Index Solutions | Lyxor SP vs. Amundi Index Solutions | Lyxor SP vs. Manitou BF SA | Lyxor SP vs. Ossiam Minimum Variance |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |