Correlation Between Intel and Lyxor 1

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

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

Diversification Opportunities for Intel and Lyxor 1

-0.39

Correlation Coefficient

Intel  Lyxor 1

Very good diversification

The 3 months correlation between Intel and Lyxor is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 and Intel 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 Intel are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Intel i.e., Intel and Lyxor 1 go up and down completely randomly.

Pair Corralation between Intel and Lyxor 1

Assuming the 90 days trading horizon Intel is expected to under-perform the Lyxor 1. In addition to that, Intel is 3.75 times more volatile than Lyxor 1 . It trades about -0.04 of its total potential returns per unit of risk. Lyxor 1 is currently generating about 0.09 per unit of volatility. If you would invest  2,381  in Lyxor 1 on September 22, 2024 and sell it today you would earn a total of  117.00  from holding Lyxor 1 or generate 4.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intel  vs.  Lyxor 1

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Lyxor 1

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lyxor 1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Intel and Lyxor 1

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

The idea behind Intel and Lyxor 1 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.