Correlation Between Amundi Treasury and Lyxor Core
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Lyxor Core 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 Amundi Treasury and Lyxor Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Treasury Bond and Lyxor Core UK, you can compare the effects of market volatilities on Amundi Treasury and Lyxor Core 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 Amundi Treasury with a short position of Lyxor Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Lyxor Core.
Diversification Opportunities for Amundi Treasury and Lyxor Core
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Lyxor is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Lyxor Core UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Core UK and Amundi Treasury 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 Amundi Treasury Bond are associated (or correlated) with Lyxor Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Core UK has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Lyxor Core go up and down completely randomly.
Pair Corralation between Amundi Treasury and Lyxor Core
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to generate 1.19 times more return on investment than Lyxor Core. However, Amundi Treasury is 1.19 times more volatile than Lyxor Core UK. It trades about 0.08 of its potential returns per unit of risk. Lyxor Core UK is currently generating about -0.02 per unit of risk. If you would invest 689.00 in Amundi Treasury Bond on December 30, 2024 and sell it today you would earn a total of 24.00 from holding Amundi Treasury Bond or generate 3.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Amundi Treasury Bond vs. Lyxor Core UK
Performance |
Timeline |
Amundi Treasury Bond |
Lyxor Core UK |
Amundi Treasury and Lyxor Core Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi Treasury and Lyxor Core
The main advantage of trading using opposite Amundi Treasury and Lyxor Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Lyxor Core 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 Core will offset losses from the drop in Lyxor Core's long position.Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
Lyxor Core vs. Lyxor UCITS EuroMTS | Lyxor Core vs. Lyxor Core Global | Lyxor Core vs. Lyxor UCITS iBoxx | Lyxor Core vs. Lyxor Treasury 3 7Y |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |