Correlation Between Lyxor 10Y and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Lyxor 10Y and SSgA SPDR 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 10Y and SSgA SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 10Y Inflation and SSgA SPDR ETFs, you can compare the effects of market volatilities on Lyxor 10Y and SSgA SPDR 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 10Y with a short position of SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 10Y and SSgA SPDR.
Diversification Opportunities for Lyxor 10Y and SSgA SPDR
Very weak diversification
The 3 months correlation between Lyxor and SSgA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 10Y Inflation and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs and Lyxor 10Y 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 10Y Inflation are associated (or correlated) with SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Lyxor 10Y i.e., Lyxor 10Y and SSgA SPDR go up and down completely randomly.
Pair Corralation between Lyxor 10Y and SSgA SPDR
Assuming the 90 days trading horizon Lyxor 10Y is expected to generate 6.23 times less return on investment than SSgA SPDR. But when comparing it to its historical volatility, Lyxor 10Y Inflation is 4.37 times less risky than SSgA SPDR. It trades about 0.2 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 17,364 in SSgA SPDR ETFs on April 25, 2025 and sell it today you would earn a total of 2,141 from holding SSgA SPDR ETFs or generate 12.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lyxor 10Y Inflation vs. SSgA SPDR ETFs
Performance |
Timeline |
Lyxor 10Y Inflation |
SSgA SPDR ETFs |
Lyxor 10Y and SSgA SPDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor 10Y and SSgA SPDR
The main advantage of trading using opposite Lyxor 10Y and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 10Y position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.Lyxor 10Y vs. Lyxor UCITS EuroMTS | Lyxor 10Y vs. Lyxor Core UK | Lyxor 10Y vs. Lyxor Core Global | Lyxor 10Y vs. Lyxor UCITS iBoxx |
SSgA SPDR vs. SSgA SPDR Barclays | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs | SSgA SPDR vs. SSgA SPDR ETFs |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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