Correlation Between Lyxor 1 and Rock Tech
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Rock Tech 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 1 and Rock Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Rock Tech Lithium, you can compare the effects of market volatilities on Lyxor 1 and Rock Tech 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 1 with a short position of Rock Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Rock Tech.
Diversification Opportunities for Lyxor 1 and Rock Tech
Good diversification
The 3 months correlation between Lyxor and Rock is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Rock Tech Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rock Tech Lithium and Lyxor 1 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 1 are associated (or correlated) with Rock Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rock Tech Lithium has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Rock Tech go up and down completely randomly.
Pair Corralation between Lyxor 1 and Rock Tech
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.17 times more return on investment than Rock Tech. However, Lyxor 1 is 6.04 times less risky than Rock Tech. It trades about 0.14 of its potential returns per unit of risk. Rock Tech Lithium is currently generating about -0.04 per unit of risk. If you would invest 2,483 in Lyxor 1 on October 25, 2024 and sell it today you would earn a total of 168.00 from holding Lyxor 1 or generate 6.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lyxor 1 vs. Rock Tech Lithium
Performance |
Timeline |
Lyxor 1 |
Rock Tech Lithium |
Lyxor 1 and Rock Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor 1 and Rock Tech
The main advantage of trading using opposite Lyxor 1 and Rock Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Rock Tech 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 Rock Tech will offset losses from the drop in Rock Tech's long position.Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
Rock Tech vs. CANON MARKETING JP | Rock Tech vs. Carsales | Rock Tech vs. MARKET VECTR RETAIL | Rock Tech vs. KENEDIX OFFICE INV |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |