Correlation Between Lyxor Smart and IShares Corp
Can any of the company-specific risk be diversified away by investing in both Lyxor Smart and IShares Corp 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 Lyxor Smart and IShares Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Smart Overnight and iShares Corp Bond, you can compare the effects of market volatilities on Lyxor Smart and IShares Corp 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 Lyxor Smart with a short position of IShares Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Smart and IShares Corp.
Diversification Opportunities for Lyxor Smart and IShares Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Smart Overnight and iShares Corp Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Corp Bond and Lyxor Smart 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 Lyxor Smart Overnight are associated (or correlated) with IShares Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Corp Bond has no effect on the direction of Lyxor Smart i.e., Lyxor Smart and IShares Corp go up and down completely randomly.
Pair Corralation between Lyxor Smart and IShares Corp
If you would invest 121,560 in Lyxor Smart Overnight on September 2, 2024 and sell it today you would earn a total of 460.00 from holding Lyxor Smart Overnight or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor Smart Overnight vs. iShares Corp Bond
Performance |
| Timeline |
| Lyxor Smart Overnight |
| iShares Corp Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Lyxor Smart and IShares Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Smart and IShares Corp
The main advantage of trading using opposite Lyxor Smart and IShares Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Smart position performs unexpectedly, IShares Corp 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 IShares Corp will offset losses from the drop in IShares Corp's long position.| Lyxor Smart vs. Lyxor UCITS EuroMTS | Lyxor Smart vs. Lyxor Core UK | Lyxor Smart vs. Lyxor Core Global | Lyxor Smart vs. Lyxor UCITS iBoxx |
| IShares Corp vs. iShares MSCI Japan | IShares Corp vs. iShares JP Morgan | IShares Corp vs. iShares MSCI Europe | IShares Corp vs. iShares Nasdaq Biotechnology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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