Correlation Between Lyxor Fed and Leverage Shares
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lyxor Fed Funds and Leverage Shares 3x, you can compare the effects of market volatilities on Lyxor Fed and Leverage Shares 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 Fed with a short position of Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Fed and Leverage Shares.
Diversification Opportunities for Lyxor Fed and Leverage Shares
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and Leverage is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Fed Funds and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x and Lyxor Fed 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 Fed Funds are associated (or correlated) with Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of Lyxor Fed i.e., Lyxor Fed and Leverage Shares go up and down completely randomly.
Pair Corralation between Lyxor Fed and Leverage Shares
Assuming the 90 days trading horizon Lyxor Fed Funds is expected to generate 0.23 times more return on investment than Leverage Shares. However, Lyxor Fed Funds is 4.27 times less risky than Leverage Shares. It trades about 0.31 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about 0.01 per unit of risk. If you would invest 9,125 in Lyxor Fed Funds on September 26, 2024 and sell it today you would earn a total of 798.00 from holding Lyxor Fed Funds or generate 8.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lyxor Fed Funds vs. Leverage Shares 3x
Performance |
Timeline |
Lyxor Fed Funds |
Leverage Shares 3x |
Lyxor Fed and Leverage Shares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor Fed and Leverage Shares
The main advantage of trading using opposite Lyxor Fed and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Fed position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.Lyxor Fed vs. Lyxor BofAML USD | Lyxor Fed vs. Lyxor Index Fund | Lyxor Fed vs. Lyxor 1 TecDAX | Lyxor Fed vs. Lyxor Index Fund |
Leverage Shares vs. UBS Fund Solutions | Leverage Shares vs. Xtrackers II | Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Bonds Directory Find actively traded corporate debentures issued by US companies |