Correlation Between Lyxor 1 and PICC Property
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and PICC Property 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 PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and PICC Property and, you can compare the effects of market volatilities on Lyxor 1 and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and PICC Property.
Diversification Opportunities for Lyxor 1 and PICC Property
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and PICC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and PICC Property go up and down completely randomly.
Pair Corralation between Lyxor 1 and PICC Property
Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.41 times more return on investment than PICC Property. However, Lyxor 1 is 2.45 times less risky than PICC Property. It trades about 0.22 of its potential returns per unit of risk. PICC Property and is currently generating about 0.06 per unit of risk. If you would invest 2,490 in Lyxor 1 on April 22, 2025 and sell it today you would earn a total of 360.00 from holding Lyxor 1 or generate 14.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Lyxor 1 vs. PICC Property and
Performance |
Timeline |
Lyxor 1 |
PICC Property |
Lyxor 1 and PICC Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor 1 and PICC Property
The main advantage of trading using opposite Lyxor 1 and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
PICC Property vs. UNIQA INSURANCE GR | PICC Property vs. Virtu Financial | PICC Property vs. SUN LIFE FINANCIAL | PICC Property vs. ECHO INVESTMENT ZY |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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