Correlation Between Xtrackers and Lyxor UCITS
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By analyzing existing cross correlation between Xtrackers II and Lyxor UCITS EuroMTS, you can compare the effects of market volatilities on Xtrackers and Lyxor UCITS 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 UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Lyxor UCITS.
Diversification Opportunities for Xtrackers and Lyxor UCITS
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Lyxor is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and Lyxor UCITS EuroMTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS EuroMTS 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 UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS EuroMTS has no effect on the direction of Xtrackers i.e., Xtrackers and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Xtrackers and Lyxor UCITS
Assuming the 90 days trading horizon Xtrackers II is expected to generate 6.81 times more return on investment than Lyxor UCITS. However, Xtrackers is 6.81 times more volatile than Lyxor UCITS EuroMTS. It trades about 0.04 of its potential returns per unit of risk. Lyxor UCITS EuroMTS is currently generating about 0.23 per unit of risk. If you would invest 748.00 in Xtrackers II on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Xtrackers II or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xtrackers II vs. Lyxor UCITS EuroMTS
Performance |
| Timeline |
| Xtrackers II |
| Lyxor UCITS EuroMTS |
Xtrackers and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Lyxor UCITS
The main advantage of trading using opposite Xtrackers and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| Lyxor UCITS vs. UBS Fund Solutions | Lyxor UCITS vs. Xtrackers II | Lyxor UCITS vs. Xtrackers Nikkei 225 | Lyxor UCITS 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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