Correlation Between Lyxor Index and Lyxor Index
Can any of the company-specific risk be diversified away by investing in both Lyxor Index and Lyxor 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 Lyxor 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 Lyxor Index Fund, you can compare the effects of market volatilities on Lyxor Index and Lyxor 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 Lyxor Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Lyxor Index.
Diversification Opportunities for Lyxor Index and Lyxor Index
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Lyxor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Lyxor Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Index Fund 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 Lyxor Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Index Fund has no effect on the direction of Lyxor Index i.e., Lyxor Index and Lyxor Index go up and down completely randomly.
Pair Corralation between Lyxor Index and Lyxor Index
Assuming the 90 days trading horizon Lyxor Index Fund is expected to under-perform the Lyxor Index. But the etf apears to be less risky and, when comparing its historical volatility, Lyxor Index Fund is 1.03 times less risky than Lyxor Index. The etf trades about -0.04 of its potential returns per unit of risk. The Lyxor Index Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,908 in Lyxor Index Fund on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Lyxor Index Fund or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Index Fund vs. Lyxor Index Fund
Performance |
| Timeline |
| Lyxor Index Fund |
| Lyxor Index Fund |
Lyxor Index and Lyxor Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Lyxor Index
The main advantage of trading using opposite Lyxor Index and Lyxor Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Lyxor 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 Lyxor Index will offset losses from the drop in Lyxor Index's long position.| Lyxor Index vs. Lyxor UCITS Japan | Lyxor Index vs. Lyxor UCITS Japan | Lyxor Index vs. Lyxor UCITS Stoxx | Lyxor Index 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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