Correlation Between Lyxor UCITS and Global X
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS and Global X 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 UCITS and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS iBoxx and Global X Hydrogen, you can compare the effects of market volatilities on Lyxor UCITS and Global X 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 UCITS with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Global X.
Diversification Opportunities for Lyxor UCITS and Global X
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lyxor and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS iBoxx and Global X Hydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Hydrogen and Lyxor UCITS 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 UCITS iBoxx are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Hydrogen has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Global X go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Global X
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 14.1 times less return on investment than Global X. But when comparing it to its historical volatility, Lyxor UCITS iBoxx is 10.73 times less risky than Global X. It trades about 0.15 of its potential returns per unit of risk. Global X Hydrogen is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 431.00 in Global X Hydrogen on September 1, 2024 and sell it today you would earn a total of 92.00 from holding Global X Hydrogen or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS iBoxx vs. Global X Hydrogen
Performance |
| Timeline |
| Lyxor UCITS iBoxx |
| Global X Hydrogen |
Lyxor UCITS and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Global X
The main advantage of trading using opposite Lyxor UCITS and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Lyxor UCITS vs. Lyxor Smart Overnight | Lyxor UCITS vs. Lyxor UCITS EuroMTS | Lyxor UCITS vs. Lyxor Core UK | Lyxor UCITS vs. Lyxor Core Global |
| Global X vs. Vanguard FTSE Developed | Global X vs. Leverage Shares 2x | Global X vs. Amundi Index Solutions | Global X vs. Amundi Index Solutions |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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