Correlation Between Lyxor 1 and ASPEN PHARUNADR

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

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

Diversification Opportunities for Lyxor 1 and ASPEN PHARUNADR

-0.59

Correlation Coefficient

Lyxor 1  ASPEN PHARUNADR

Excellent diversification

The 3 months correlation between Lyxor and ASPEN is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and ASPEN PHARUNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN PHARUNADR 1 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 ASPEN PHARUNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN PHARUNADR 1 has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and ASPEN PHARUNADR go up and down completely randomly.

Pair Corralation between Lyxor 1 and ASPEN PHARUNADR

Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.19 times more return on investment than ASPEN PHARUNADR. However, Lyxor 1 is 5.28 times less risky than ASPEN PHARUNADR. It trades about 0.19 of its potential returns per unit of risk. ASPEN PHARUNADR 1 is currently generating about -0.08 per unit of risk. If you would invest  2,572  in Lyxor 1 on April 23, 2025 and sell it today you would earn a total of  278.00  from holding Lyxor 1 or generate 10.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Lyxor 1   vs.  ASPEN PHARUNADR 1

Lyxor 1

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 14 (%) 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.

ASPEN PHARUNADR 1

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASPEN PHARUNADR 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Lyxor 1 and ASPEN PHARUNADR

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

The idea behind Lyxor 1 and ASPEN PHARUNADR 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.