Correlation Between Lyxor Fed and BNP Paribas
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By analyzing existing cross correlation between Lyxor Fed Funds and BNP Paribas Easy, you can compare the effects of market volatilities on Lyxor Fed and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Fed and BNP Paribas.
Diversification Opportunities for Lyxor Fed and BNP Paribas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lyxor and BNP is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Fed Funds and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of Lyxor Fed i.e., Lyxor Fed and BNP Paribas go up and down completely randomly.
Pair Corralation between Lyxor Fed and BNP Paribas
Assuming the 90 days trading horizon Lyxor Fed Funds is expected to generate 0.53 times more return on investment than BNP Paribas. However, Lyxor Fed Funds is 1.9 times less risky than BNP Paribas. It trades about 0.31 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.15 per unit of risk. If you would invest 9,136 in Lyxor Fed Funds on September 25, 2024 and sell it today you would earn a total of 787.00 from holding Lyxor Fed Funds or generate 8.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.46% |
Values | Daily Returns |
Lyxor Fed Funds vs. BNP Paribas Easy
Performance |
Timeline |
Lyxor Fed Funds |
BNP Paribas Easy |
Lyxor Fed and BNP Paribas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor Fed and BNP Paribas
The main advantage of trading using opposite Lyxor Fed and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Fed position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.Lyxor Fed vs. UBS Fund Solutions | Lyxor Fed vs. Xtrackers II | Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed vs. iShares VII PLC |
BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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