Correlation Between Amundi SP and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi SP 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 SP 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 SP Global and Lyxor UCITS Japan, you can compare the effects of market volatilities on Amundi SP 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 SP with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SP and Lyxor UCITS.
Diversification Opportunities for Amundi SP and Lyxor UCITS
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Lyxor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SP Global and Lyxor UCITS Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Japan and Amundi SP 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 SP Global 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 Japan has no effect on the direction of Amundi SP i.e., Amundi SP and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi SP and Lyxor UCITS
Assuming the 90 days trading horizon Amundi SP Global is expected to under-perform the Lyxor UCITS. In addition to that, Amundi SP is 1.17 times more volatile than Lyxor UCITS Japan. It trades about -0.09 of its total potential returns per unit of risk. Lyxor UCITS Japan is currently generating about 0.27 per unit of volatility. If you would invest 16,095 in Lyxor UCITS Japan on September 13, 2024 and sell it today you would earn a total of 799.00 from holding Lyxor UCITS Japan or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amundi SP Global vs. Lyxor UCITS Japan
Performance |
| Timeline |
| Amundi SP Global |
| Lyxor UCITS Japan |
Amundi SP and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SP and Lyxor UCITS
The main advantage of trading using opposite Amundi SP and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SP 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 SP vs. Lyxor UCITS Japan | Amundi SP vs. Lyxor UCITS Japan | Amundi SP vs. Lyxor UCITS Stoxx | Amundi SP vs. Amundi CAC 40 |
| Lyxor UCITS vs. Lyxor MSCI China | Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Multi Units Luxembourg | Lyxor UCITS vs. Lyxor MSCI Brazil |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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