Correlation Between Lyxor Treasury and IShares Public
Can any of the company-specific risk be diversified away by investing in both Lyxor Treasury and IShares Public 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 Treasury and IShares Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Treasury 1 3Y and iShares Public Limited, you can compare the effects of market volatilities on Lyxor Treasury and IShares Public 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 Treasury with a short position of IShares Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Treasury and IShares Public.
Diversification Opportunities for Lyxor Treasury and IShares Public
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and IShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Treasury 1 3Y and iShares Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Public and Lyxor Treasury 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 Treasury 1 3Y are associated (or correlated) with IShares Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Public has no effect on the direction of Lyxor Treasury i.e., Lyxor Treasury and IShares Public go up and down completely randomly.
Pair Corralation between Lyxor Treasury and IShares Public
Assuming the 90 days trading horizon Lyxor Treasury is expected to generate 11.96 times less return on investment than IShares Public. But when comparing it to its historical volatility, Lyxor Treasury 1 3Y is 14.93 times less risky than IShares Public. It trades about 0.22 of its potential returns per unit of risk. iShares Public Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,562 in iShares Public Limited on October 20, 2024 and sell it today you would earn a total of 159.00 from holding iShares Public Limited or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Treasury 1 3Y vs. iShares Public Limited
Performance |
| Timeline |
| Lyxor Treasury 1 |
| iShares Public |
Lyxor Treasury and IShares Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Treasury and IShares Public
The main advantage of trading using opposite Lyxor Treasury and IShares Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Treasury position performs unexpectedly, IShares Public 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 Public will offset losses from the drop in IShares Public's long position.| Lyxor Treasury vs. Vanguard SP 500 | Lyxor Treasury vs. SPDR Dow Jones | Lyxor Treasury vs. iShares Core MSCI | Lyxor Treasury vs. iShares SP 500 |
| IShares Public vs. Vanguard SP 500 | IShares Public vs. SPDR Dow Jones | IShares Public vs. iShares Core MSCI | IShares Public vs. iShares SP 500 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |