Correlation Between Lyxor 1 and COMMONWBK AUSTRSPADRS

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

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

Diversification Opportunities for Lyxor 1 and COMMONWBK AUSTRSPADRS

0.0

Correlation Coefficient

Lyxor 1  COMMONWBK AUSTRSPADRS

Pay attention - limited upside

The 3 months correlation between Lyxor and COMMONWBK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and COMMONWBK AUSTRSPADRS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMONWBK AUSTRSPADRS and Lyxor 1 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 1 are associated (or correlated) with COMMONWBK AUSTRSPADRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMONWBK AUSTRSPADRS has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and COMMONWBK AUSTRSPADRS go up and down completely randomly.

Pair Corralation between Lyxor 1 and COMMONWBK AUSTRSPADRS

If you would invest  2,604  in Lyxor 1 on April 24, 2025 and sell it today you would earn a total of  205.00  from holding Lyxor 1 or generate 7.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lyxor 1   vs.  COMMONWBK AUSTRSPADRS

Lyxor 1

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Lyxor 1 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

COMMONWBK AUSTRSPADRS

Risk-Adjusted Performance

OK

Over the last 90 days COMMONWBK AUSTRSPADRS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COMMONWBK AUSTRSPADRS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lyxor 1 and COMMONWBK AUSTRSPADRS

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

The idea behind Lyxor 1 and COMMONWBK AUSTRSPADRS 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.