Correlation Between Lyxor Index and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Lyxor Index and Amundi Index 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 Index and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Index Fund and Amundi Index Solutions, you can compare the effects of market volatilities on Lyxor Index and Amundi 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 Lyxor Index with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Amundi Index.
Diversification Opportunities for Lyxor Index and Amundi Index
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Amundi is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Lyxor Index 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 Index Fund are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Lyxor Index i.e., Lyxor Index and Amundi Index go up and down completely randomly.
Pair Corralation between Lyxor Index and Amundi Index
Assuming the 90 days trading horizon Lyxor Index is expected to generate 63.67 times less return on investment than Amundi Index. But when comparing it to its historical volatility, Lyxor Index Fund is 1.25 times less risky than Amundi Index. It trades about 0.01 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 65,843 in Amundi Index Solutions on September 3, 2024 and sell it today you would earn a total of 6,534 from holding Amundi Index Solutions or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Index Fund vs. Amundi Index Solutions
Performance |
| Timeline |
| Lyxor Index Fund |
| Amundi Index Solutions |
Lyxor Index and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Amundi Index
The main advantage of trading using opposite Lyxor Index and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Amundi 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 Amundi Index will offset losses from the drop in Amundi Index's long position.| Lyxor Index vs. Lyxor SP 500 | Lyxor Index vs. Lyxor UCITS Daily | Lyxor Index vs. Lyxor UCITS MSCI | Lyxor Index vs. Lyxor Treasury 10Y |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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