Correlation Between Amundi ETF and Lyxor PEA
Can any of the company-specific risk be diversified away by investing in both Amundi ETF 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 Amundi ETF and Lyxor PEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi ETF PEA and Lyxor PEA SP, you can compare the effects of market volatilities on Amundi ETF 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 Amundi ETF with a short position of Lyxor PEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and Lyxor PEA.
Diversification Opportunities for Amundi ETF and Lyxor PEA
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amundi and Lyxor is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF PEA 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 Amundi ETF 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 ETF PEA 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 Amundi ETF i.e., Amundi ETF and Lyxor PEA go up and down completely randomly.
Pair Corralation between Amundi ETF and Lyxor PEA
Assuming the 90 days trading horizon Amundi ETF is expected to generate 1.01 times less return on investment than Lyxor PEA. In addition to that, Amundi ETF is 1.0 times more volatile than Lyxor PEA SP. It trades about 0.11 of its total potential returns per unit of risk. Lyxor PEA SP is currently generating about 0.11 per unit of volatility. If you would invest 3,223 in Lyxor PEA SP on September 3, 2024 and sell it today you would earn a total of 1,735 from holding Lyxor PEA SP or generate 53.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi ETF PEA vs. Lyxor PEA SP
Performance |
| Timeline |
| Amundi ETF PEA |
| Lyxor PEA SP |
Amundi ETF and Lyxor PEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and Lyxor PEA
The main advantage of trading using opposite Amundi ETF and Lyxor PEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF 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.| Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA |
| Lyxor PEA vs. Amundi Index Solutions | Lyxor PEA vs. Amundi Index Solutions | Lyxor PEA vs. Manitou BF SA | Lyxor PEA 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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