Correlation Between SPDR Barclays and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays 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 SPDR Barclays and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Cap and Lyxor UCITS Japan, you can compare the effects of market volatilities on SPDR Barclays 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 SPDR Barclays with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Lyxor UCITS.
Diversification Opportunities for SPDR Barclays and Lyxor UCITS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPDR and Lyxor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Cap 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 SPDR Barclays 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 SPDR Barclays Cap 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 SPDR Barclays i.e., SPDR Barclays and Lyxor UCITS go up and down completely randomly.
Pair Corralation between SPDR Barclays and Lyxor UCITS
Assuming the 90 days trading horizon SPDR Barclays is expected to generate 3.16 times less return on investment than Lyxor UCITS. In addition to that, SPDR Barclays is 1.37 times more volatile than Lyxor UCITS Japan. It trades about 0.01 of its total potential returns per unit of risk. Lyxor UCITS Japan is currently generating about 0.05 per unit of volatility. If you would invest 13,592 in Lyxor UCITS Japan on August 31, 2024 and sell it today you would earn a total of 2,836 from holding Lyxor UCITS Japan or generate 20.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.59% |
| Values | Daily Returns |
SPDR Barclays Cap vs. Lyxor UCITS Japan
Performance |
| Timeline |
| SPDR Barclays Cap |
| Lyxor UCITS Japan |
SPDR Barclays and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Lyxor UCITS
The main advantage of trading using opposite SPDR Barclays and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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.| SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR MSCI Europe | SPDR Barclays vs. SPDR SP 500 | SPDR Barclays vs. SPDR MSCI Europe |
| Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Lyxor MSCI China | Lyxor UCITS vs. Lyxor Commodities RefinitivCoreCommodity | Lyxor UCITS vs. Manitou BF SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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