Correlation Between Lyxor 1 and RUECKER IMMOBILIEN

Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lyxor 1 and RUECKER IMMOBILIEN, you can compare the effects of market volatilities on Lyxor 1 and RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and RUECKER IMMOBILIEN.

Diversification Opportunities for Lyxor 1 and RUECKER IMMOBILIEN

0.37

Correlation Coefficient

Lyxor 1  RUECKER IMMOBILIEN

Weak diversification

The 3 months correlation between Lyxor and RUECKER is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and RUECKER IMMOBILIEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RUECKER IMMOBILIEN has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and RUECKER IMMOBILIEN go up and down completely randomly.

Pair Corralation between Lyxor 1 and RUECKER IMMOBILIEN

Assuming the 90 days trading horizon Lyxor 1 is expected to generate 2.61 times less return on investment than RUECKER IMMOBILIEN. But when comparing it to its historical volatility, Lyxor 1 is 6.68 times less risky than RUECKER IMMOBILIEN. It trades about 0.15 of its potential returns per unit of risk. RUECKER IMMOBILIEN is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  370.00  in RUECKER IMMOBILIEN on December 23, 2024 and sell it today you would earn a total of  40.00  from holding RUECKER IMMOBILIEN or generate 10.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Lyxor 1   vs.  RUECKER IMMOBILIEN

Lyxor 1

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Lyxor 1 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

RUECKER IMMOBILIEN

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in RUECKER IMMOBILIEN are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, RUECKER IMMOBILIEN displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lyxor 1 and RUECKER IMMOBILIEN

The main advantage of trading using opposite Lyxor 1 and RUECKER IMMOBILIEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, RUECKER IMMOBILIEN 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 RUECKER IMMOBILIEN will offset losses from the drop in RUECKER IMMOBILIEN's long position.

The idea behind Lyxor 1 and RUECKER IMMOBILIEN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.