Correlation Between Lyxor 1 and Take Two

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

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

Diversification Opportunities for Lyxor 1 and Take Two

-0.02

Correlation Coefficient

Lyxor 1  Take Two

Good diversification

The 3 months correlation between Lyxor and Take is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Take Two go up and down completely randomly.

Pair Corralation between Lyxor 1 and Take Two

Assuming the 90 days trading horizon Lyxor 1 is expected to generate 0.68 times more return on investment than Take Two. However, Lyxor 1 is 1.47 times less risky than Take Two. It trades about 0.01 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.0 per unit of risk. If you would invest  2,722  in Lyxor 1 on May 4, 2025 and sell it today you would earn a total of  5.00  from holding Lyxor 1 or generate 0.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Lyxor 1   vs.  Take Two Interactive Software

Lyxor 1

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lyxor 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Lyxor 1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Take Two Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Take Two Interactive Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Take Two is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lyxor 1 and Take Two

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

The idea behind Lyxor 1 and Take Two Interactive Software 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.