Correlation Between Lyxor Index and Amundi SP
Can any of the company-specific risk be diversified away by investing in both Lyxor Index and Amundi SP 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 SP 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 SP Global, you can compare the effects of market volatilities on Lyxor Index and Amundi SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Amundi SP.
Diversification Opportunities for Lyxor Index and Amundi SP
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Amundi is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Amundi SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP Global 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP Global has no effect on the direction of Lyxor Index i.e., Lyxor Index and Amundi SP go up and down completely randomly.
Pair Corralation between Lyxor Index and Amundi SP
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 0.7 times more return on investment than Amundi SP. However, Lyxor Index Fund is 1.42 times less risky than Amundi SP. It trades about 0.06 of its potential returns per unit of risk. Amundi SP Global is currently generating about -0.09 per unit of risk. If you would invest 6,759 in Lyxor Index Fund on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Lyxor Index Fund or generate 0.89% 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 SP Global
Performance |
| Timeline |
| Lyxor Index Fund |
| Amundi SP Global |
Lyxor Index and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Amundi SP
The main advantage of trading using opposite Lyxor Index and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Amundi SP 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 SP will offset losses from the drop in Amundi SP'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 SP vs. Lyxor UCITS Japan | Amundi SP vs. Lyxor UCITS Japan | Amundi SP vs. Lyxor UCITS Stoxx | Amundi SP vs. Amundi CAC 40 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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