Correlation Between Lyxor PEA and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Lyxor PEA and Amundi Index 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 PEA and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor PEA Nasdaq and Amundi Index Solutions, you can compare the effects of market volatilities on Lyxor PEA and Amundi Index 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 PEA with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor PEA and Amundi Index.
Diversification Opportunities for Lyxor PEA and Amundi Index
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lyxor and Amundi is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor PEA Nasdaq and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Lyxor PEA 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 PEA Nasdaq are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Lyxor PEA i.e., Lyxor PEA and Amundi Index go up and down completely randomly.
Pair Corralation between Lyxor PEA and Amundi Index
Assuming the 90 days trading horizon Lyxor PEA Nasdaq is expected to generate 1.05 times more return on investment than Amundi Index. However, Lyxor PEA is 1.05 times more volatile than Amundi Index Solutions. It trades about 0.08 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.06 per unit of risk. If you would invest 7,429 in Lyxor PEA Nasdaq on September 26, 2024 and sell it today you would earn a total of 888.00 from holding Lyxor PEA Nasdaq or generate 11.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lyxor PEA Nasdaq vs. Amundi Index Solutions
Performance |
Timeline |
Lyxor PEA Nasdaq |
Amundi Index Solutions |
Lyxor PEA and Amundi Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor PEA and Amundi Index
The main advantage of trading using opposite Lyxor PEA and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor PEA position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.Lyxor PEA vs. Lyxor UCITS Japan | Lyxor PEA vs. Lyxor UCITS Japan | Lyxor PEA vs. Lyxor UCITS Stoxx | Lyxor PEA vs. Amundi CAC 40 |
Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |