Correlation Between Lyxor 1 and AGBarr PLC

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

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

Diversification Opportunities for Lyxor 1 and AGBarr PLC

0.0

Correlation Coefficient

Lyxor 1  AGBarr PLC

Pay attention - limited upside

The 3 months correlation between Lyxor and AGBarr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and AGBarr PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBarr PLC 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 AGBarr PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBarr PLC has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and AGBarr PLC go up and down completely randomly.

Pair Corralation between Lyxor 1 and AGBarr PLC

If you would invest  0.00  in AGBarr PLC on March 2, 2024 and sell it today you would earn a total of  0.00  from holding AGBarr PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Lyxor 1   vs.  AGBarr PLC

Lyxor 1

Risk-Adjusted Performance

0 of 100

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

AGBarr PLC

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days AGBarr PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AGBarr PLC 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 AGBarr PLC

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

The idea behind Lyxor 1 and AGBarr PLC 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.