Correlation Between Amundi FTSE and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi FTSE and Lyxor UCITS 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 Amundi FTSE and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi FTSE EPRANAREIT and Lyxor UCITS FTSE, you can compare the effects of market volatilities on Amundi FTSE and Lyxor UCITS 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 Amundi FTSE with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi FTSE and Lyxor UCITS.
Diversification Opportunities for Amundi FTSE and Lyxor UCITS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Lyxor is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amundi FTSE EPRANAREIT and Lyxor UCITS FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS FTSE and Amundi FTSE 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 Amundi FTSE EPRANAREIT are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS FTSE has no effect on the direction of Amundi FTSE i.e., Amundi FTSE and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi FTSE and Lyxor UCITS
Assuming the 90 days trading horizon Amundi FTSE EPRANAREIT is expected to generate 0.62 times more return on investment than Lyxor UCITS. However, Amundi FTSE EPRANAREIT is 1.61 times less risky than Lyxor UCITS. It trades about 0.32 of its potential returns per unit of risk. Lyxor UCITS FTSE is currently generating about 0.02 per unit of risk. If you would invest 4,276 in Amundi FTSE EPRANAREIT on September 2, 2024 and sell it today you would earn a total of 198.00 from holding Amundi FTSE EPRANAREIT or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi FTSE EPRANAREIT vs. Lyxor UCITS FTSE
Performance |
| Timeline |
| Amundi FTSE EPRANAREIT |
| Lyxor UCITS FTSE |
Amundi FTSE and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi FTSE and Lyxor UCITS
The main advantage of trading using opposite Amundi FTSE and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi FTSE position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Amundi FTSE vs. Lyxor MSCI China | Amundi FTSE vs. Manitou BF SA | Amundi FTSE vs. Granite 3x LVMH | Amundi FTSE vs. 21Shares Polkadot ETP |
| Lyxor UCITS vs. Lyxor MSCI China | Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Granite 3x LVMH | Lyxor UCITS vs. 21Shares Polkadot ETP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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