Correlation Between Lyxor Index and Lyxor SP
Can any of the company-specific risk be diversified away by investing in both Lyxor Index and Lyxor SP 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 Index and Lyxor SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Index Fund and Lyxor SP 500, you can compare the effects of market volatilities on Lyxor Index and Lyxor SP 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 Index with a short position of Lyxor SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Lyxor SP.
Diversification Opportunities for Lyxor Index and Lyxor SP
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Lyxor is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund and Lyxor SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor SP 500 and Lyxor Index 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 Index Fund are associated (or correlated) with Lyxor SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor SP 500 has no effect on the direction of Lyxor Index i.e., Lyxor Index and Lyxor SP go up and down completely randomly.
Pair Corralation between Lyxor Index and Lyxor SP
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 0.44 times more return on investment than Lyxor SP. However, Lyxor Index Fund is 2.26 times less risky than Lyxor SP. It trades about -0.02 of its potential returns per unit of risk. Lyxor SP 500 is currently generating about -0.07 per unit of risk. If you would invest 9,291 in Lyxor Index Fund on September 26, 2024 and sell it today you would lose (693.00) from holding Lyxor Index Fund or give up 7.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Lyxor Index Fund vs. Lyxor SP 500
Performance |
Timeline |
Lyxor Index Fund |
Lyxor SP 500 |
Lyxor Index and Lyxor SP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor Index and Lyxor SP
The main advantage of trading using opposite Lyxor Index and Lyxor SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index position performs unexpectedly, Lyxor SP 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 SP will offset losses from the drop in Lyxor SP's long position.Lyxor Index vs. Lyxor SP 500 | Lyxor Index vs. Lyxor UCITS Daily | Lyxor Index vs. Lyxor UCITS MSCI | Lyxor Index vs. Lyxor Treasury 10Y |
Lyxor SP vs. Lyxor UCITS Japan | Lyxor SP vs. Lyxor UCITS Japan | Lyxor SP vs. Lyxor UCITS Stoxx | Lyxor SP vs. Amundi CAC 40 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |