Correlation Between SBF 120 and Lyxor Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between SBF 120 and Lyxor Index Fund, you can compare the effects of market volatilities on SBF 120 and Lyxor Index 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 SBF 120 with a short position of Lyxor Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and Lyxor Index.
Diversification Opportunities for SBF 120 and Lyxor Index
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBF and Lyxor is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and Lyxor Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Index Fund and SBF 120 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 SBF 120 are associated (or correlated) with Lyxor Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Index Fund has no effect on the direction of SBF 120 i.e., SBF 120 and Lyxor Index go up and down completely randomly.
Pair Corralation between SBF 120 and Lyxor Index
Assuming the 90 days trading horizon SBF 120 is expected to generate 0.97 times more return on investment than Lyxor Index. However, SBF 120 is 1.03 times less risky than Lyxor Index. It trades about 0.18 of its potential returns per unit of risk. Lyxor Index Fund is currently generating about 0.06 per unit of risk. If you would invest 548,412 in SBF 120 on September 13, 2024 and sell it today you would earn a total of 14,217 from holding SBF 120 or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SBF 120 vs. Lyxor Index Fund
Performance |
| Timeline |
SBF 120 and Lyxor Index Volatility Contrast
Predicted Return Density |
| Returns |
SBF 120
Pair trading matchups for SBF 120
Lyxor Index Fund
Pair trading matchups for Lyxor Index
Pair Trading with SBF 120 and Lyxor Index
The main advantage of trading using opposite SBF 120 and Lyxor Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, Lyxor Index 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 Index will offset losses from the drop in Lyxor Index's long position.| SBF 120 vs. Pullup Entertainment Socit | SBF 120 vs. Diagnostic Medical Systems | SBF 120 vs. Fiducial Office Solutions | SBF 120 vs. Jacquet Metal Service |
| Lyxor Index vs. Lyxor SP 500 | Lyxor Index vs. Lyxor UCITS Daily | Lyxor Index vs. Lyxor UCITS MSCI | Lyxor Index vs. Lyxor Treasury 10Y |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |