Correlation Between Lyxor Japan and UBS ETF
Can any of the company-specific risk be diversified away by investing in both Lyxor Japan and UBS ETF 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 Japan and UBS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Japan UCITS and UBS ETF plc, you can compare the effects of market volatilities on Lyxor Japan and UBS ETF 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 Japan with a short position of UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Japan and UBS ETF.
Diversification Opportunities for Lyxor Japan and UBS ETF
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyxor and UBS is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Japan UCITS and UBS ETF plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF plc and Lyxor Japan 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 Japan UCITS are associated (or correlated) with UBS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF plc has no effect on the direction of Lyxor Japan i.e., Lyxor Japan and UBS ETF go up and down completely randomly.
Pair Corralation between Lyxor Japan and UBS ETF
Assuming the 90 days trading horizon Lyxor Japan is expected to generate 1.32 times less return on investment than UBS ETF. In addition to that, Lyxor Japan is 1.92 times more volatile than UBS ETF plc. It trades about 0.06 of its total potential returns per unit of risk. UBS ETF plc is currently generating about 0.16 per unit of volatility. If you would invest 1,687 in UBS ETF plc on September 12, 2024 and sell it today you would earn a total of 493.00 from holding UBS ETF plc or generate 29.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lyxor Japan UCITS vs. UBS ETF plc
Performance |
Timeline |
Lyxor Japan UCITS |
UBS ETF plc |
Lyxor Japan and UBS ETF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyxor Japan and UBS ETF
The main advantage of trading using opposite Lyxor Japan and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Japan position performs unexpectedly, UBS ETF 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 UBS ETF will offset losses from the drop in UBS ETF's long position.Lyxor Japan vs. Lyxor Japan UCITS | Lyxor Japan vs. Lyxor Euro Government | Lyxor Japan vs. Lyxor MSCI China |
UBS ETF vs. UBSFund Solutions MSCI | UBS ETF vs. Vanguard SP 500 | UBS ETF vs. iShares VII PLC | UBS ETF vs. iShares Core SP |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |