Correlation Between Lyxor 1 and TUI AG
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By analyzing existing cross correlation between Lyxor 1 and TUI AG, you can compare the effects of market volatilities on Lyxor 1 and TUI AG 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 TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and TUI AG.
Diversification Opportunities for Lyxor 1 and TUI AG
Very good diversification
The 3 months correlation between Lyxor and TUI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG 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 TUI AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUI AG has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and TUI AG go up and down completely randomly.
Pair Corralation between Lyxor 1 and TUI AG
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.33 times more return on investment than TUI AG. However, Lyxor 1 is 3.02 times less risky than TUI AG. It trades about 0.11 of its potential returns per unit of risk. TUI AG is currently generating about -0.11 per unit of risk. If you would invest 2,481 in Lyxor 1 on December 30, 2024 and sell it today you would earn a total of 175.00 from holding Lyxor 1 or generate 7.05% 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. TUI AG
Performance |
Timeline |
Lyxor 1 |
TUI AG |
Lyxor 1 and TUI AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor 1 and TUI AG
The main advantage of trading using opposite Lyxor 1 and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, TUI AG 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 TUI AG will offset losses from the drop in TUI AG'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 |
TUI AG vs. QLEANAIR AB SK 50 | TUI AG vs. Air New Zealand | TUI AG vs. MYFAIR GOLD P | TUI AG vs. NORWEGIAN AIR SHUT |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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