Correlation Between Lyxor CAC and HSBC ETFs
Can any of the company-specific risk be diversified away by investing in both Lyxor CAC and HSBC ETFs 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 CAC and HSBC ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor CAC 40 and HSBC ETFs Public, you can compare the effects of market volatilities on Lyxor CAC and HSBC ETFs 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 CAC with a short position of HSBC ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor CAC and HSBC ETFs.
Diversification Opportunities for Lyxor CAC and HSBC ETFs
Pay attention - limited upside
The 3 months correlation between Lyxor and HSBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor CAC 40 and HSBC ETFs Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC ETFs Public and Lyxor CAC 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 CAC 40 are associated (or correlated) with HSBC ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC ETFs Public has no effect on the direction of Lyxor CAC i.e., Lyxor CAC and HSBC ETFs go up and down completely randomly.
Pair Corralation between Lyxor CAC and HSBC ETFs
If you would invest 3,716 in Lyxor CAC 40 on February 2, 2024 and sell it today you would earn a total of 15.00 from holding Lyxor CAC 40 or generate 0.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 2.44% |
Values | Daily Returns |
Lyxor CAC 40 vs. HSBC ETFs Public
Performance |
Timeline |
Lyxor CAC 40 |
HSBC ETFs Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Lyxor CAC and HSBC ETFs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor CAC and HSBC ETFs
The main advantage of trading using opposite Lyxor CAC and HSBC ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor CAC position performs unexpectedly, HSBC ETFs 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 HSBC ETFs will offset losses from the drop in HSBC ETFs' long position.Lyxor CAC vs. Amundi Index Solutions | Lyxor CAC vs. Amundi ETF PEA | Lyxor CAC vs. Amundi ETF PEA | Lyxor CAC vs. Amundi Index Solutions |
HSBC ETFs vs. HSBC Multi Factor | HSBC ETFs vs. HSBC MSCI China | HSBC ETFs vs. HSBC Emerging Market | HSBC ETFs vs. HSBC USA Sustainable |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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