Correlation Between Ossiam Minimum and Lyxor PEA
Can any of the company-specific risk be diversified away by investing in both Ossiam Minimum and Lyxor PEA 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 PEA 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 PEA SP, you can compare the effects of market volatilities on Ossiam Minimum and Lyxor PEA 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 PEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ossiam Minimum and Lyxor PEA.
Diversification Opportunities for Ossiam Minimum and Lyxor PEA
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 PEA SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor PEA SP 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 PEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor PEA SP has no effect on the direction of Ossiam Minimum i.e., Ossiam Minimum and Lyxor PEA go up and down completely randomly.
Pair Corralation between Ossiam Minimum and Lyxor PEA
If you would invest 4,232 in Lyxor PEA SP on September 3, 2024 and sell it today you would earn a total of 726.00 from holding Lyxor PEA SP or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Ossiam Minimum Variance vs. Lyxor PEA SP
Performance |
| Timeline |
| Ossiam Minimum Variance |
| Lyxor PEA SP |
Ossiam Minimum and Lyxor PEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ossiam Minimum and Lyxor PEA
The main advantage of trading using opposite Ossiam Minimum and Lyxor PEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Minimum position performs unexpectedly, Lyxor PEA 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 PEA will offset losses from the drop in Lyxor PEA'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 PEA vs. Amundi Index Solutions | Lyxor PEA vs. Manitou BF SA | Lyxor PEA vs. Ossiam Minimum Variance | Lyxor PEA vs. Granite 3x LVMH |
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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