Correlation Between Workday and Lyxor 1

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

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

Diversification Opportunities for Workday and Lyxor 1

0.06

Correlation Coefficient

Workday  Lyxor 1

Significant diversification

The 3 months correlation between Workday and Lyxor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 and Workday 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 Workday are associated (or correlated) with Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Workday i.e., Workday and Lyxor 1 go up and down completely randomly.

Pair Corralation between Workday and Lyxor 1

Assuming the 90 days horizon Workday is expected to generate 4.21 times less return on investment than Lyxor 1. In addition to that, Workday is 2.56 times more volatile than Lyxor 1 . It trades about 0.02 of its total potential returns per unit of risk. Lyxor 1 is currently generating about 0.19 per unit of volatility. 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Workday  vs.  Lyxor 1

Workday

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Workday are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Workday is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Lyxor 1

Risk-Adjusted Performance

Solid

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.

Pair Trading with Workday and Lyxor 1

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

The idea behind Workday and Lyxor 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.