Correlation Between Banque Cantonale and Lyxor Euro
Can any of the company-specific risk be diversified away by investing in both Banque Cantonale and Lyxor Euro 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 Banque Cantonale and Lyxor Euro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banque Cantonale du and Lyxor Euro Stoxx, you can compare the effects of market volatilities on Banque Cantonale and Lyxor Euro 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 Banque Cantonale with a short position of Lyxor Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banque Cantonale and Lyxor Euro.
Diversification Opportunities for Banque Cantonale and Lyxor Euro
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banque and Lyxor is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Banque Cantonale du and Lyxor Euro Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Euro Stoxx and Banque Cantonale 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 Banque Cantonale du are associated (or correlated) with Lyxor Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Euro Stoxx has no effect on the direction of Banque Cantonale i.e., Banque Cantonale and Lyxor Euro go up and down completely randomly.
Pair Corralation between Banque Cantonale and Lyxor Euro
Assuming the 90 days trading horizon Banque Cantonale du is expected to under-perform the Lyxor Euro. But the stock apears to be less risky and, when comparing its historical volatility, Banque Cantonale du is 3.62 times less risky than Lyxor Euro. The stock trades about -0.05 of its potential returns per unit of risk. The Lyxor Euro Stoxx is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,323 in Lyxor Euro Stoxx on September 19, 2024 and sell it today you would lose (31.00) from holding Lyxor Euro Stoxx or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banque Cantonale du vs. Lyxor Euro Stoxx
Performance |
| Timeline |
| Banque Cantonale |
| Lyxor Euro Stoxx |
Banque Cantonale and Lyxor Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banque Cantonale and Lyxor Euro
The main advantage of trading using opposite Banque Cantonale and Lyxor Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banque Cantonale position performs unexpectedly, Lyxor Euro 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 Euro will offset losses from the drop in Lyxor Euro's long position.| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Banque Cantonale de |
| Lyxor Euro vs. Baloise Holding AG | Lyxor Euro vs. 21Shares Polkadot ETP | Lyxor Euro vs. UBS ETF MSCI | Lyxor Euro vs. BB Biotech AG |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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