Correlation Between Lyxor Japan and IShares Asia
Can any of the company-specific risk be diversified away by investing in both Lyxor Japan and IShares Asia 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 Japan and IShares Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Japan UCITS and iShares Asia Property, you can compare the effects of market volatilities on Lyxor Japan and IShares Asia 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 Japan with a short position of IShares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Japan and IShares Asia.
Diversification Opportunities for Lyxor Japan and IShares Asia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lyxor and IShares is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Japan UCITS and iShares Asia Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Asia Property and Lyxor Japan 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 Japan UCITS are associated (or correlated) with IShares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Asia Property has no effect on the direction of Lyxor Japan i.e., Lyxor Japan and IShares Asia go up and down completely randomly.
Pair Corralation between Lyxor Japan and IShares Asia
Assuming the 90 days trading horizon Lyxor Japan is expected to generate 3.2 times less return on investment than IShares Asia. In addition to that, Lyxor Japan is 1.15 times more volatile than iShares Asia Property. It trades about 0.03 of its total potential returns per unit of risk. iShares Asia Property is currently generating about 0.12 per unit of volatility. If you would invest 1,842 in iShares Asia Property on December 30, 2024 and sell it today you would earn a total of 121.00 from holding iShares Asia Property or generate 6.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Lyxor Japan UCITS vs. iShares Asia Property
Performance |
Timeline |
Lyxor Japan UCITS |
iShares Asia Property |
Lyxor Japan and IShares Asia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor Japan and IShares Asia
The main advantage of trading using opposite Lyxor Japan and IShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Japan position performs unexpectedly, IShares Asia 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 IShares Asia will offset losses from the drop in IShares Asia's long position.Lyxor Japan vs. Lyxor Japan UCITS | Lyxor Japan vs. Lyxor Euro Government | Lyxor Japan vs. Lyxor MSCI China |
IShares Asia vs. iShares Corp Bond | IShares Asia vs. iShares Emerging Asia | IShares Asia vs. iShares MSCI Global | IShares Asia vs. iShares VII PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |