Correlation Between Xtrackers and Lyxor 1
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By analyzing existing cross correlation between Xtrackers II and Lyxor 1 TecDAX, you can compare the effects of market volatilities on Xtrackers and Lyxor 1 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 Xtrackers with a short position of Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Lyxor 1.
Diversification Opportunities for Xtrackers and Lyxor 1
Good diversification
The 3 months correlation between Xtrackers and Lyxor is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and Lyxor 1 TecDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 TecDAX and Xtrackers 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 Xtrackers II are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 TecDAX has no effect on the direction of Xtrackers i.e., Xtrackers and Lyxor 1 go up and down completely randomly.
Pair Corralation between Xtrackers and Lyxor 1
Assuming the 90 days trading horizon Xtrackers II is expected to under-perform the Lyxor 1. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 1.35 times less risky than Lyxor 1. The etf trades about -0.03 of its potential returns per unit of risk. The Lyxor 1 TecDAX is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,359 in Lyxor 1 TecDAX on September 12, 2024 and sell it today you would earn a total of 239.00 from holding Lyxor 1 TecDAX or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers II vs. Lyxor 1 TecDAX
Performance |
| Timeline |
| Xtrackers II |
| Lyxor 1 TecDAX |
Xtrackers and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Lyxor 1
The main advantage of trading using opposite Xtrackers and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Lyxor 1 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 1 will offset losses from the drop in Lyxor 1's long position.| Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| Lyxor 1 vs. UBS Fund Solutions | Lyxor 1 vs. Xtrackers II | Lyxor 1 vs. Xtrackers Nikkei 225 | Lyxor 1 vs. iShares VII PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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