Lyxor 1 (Germany) Volatility

E908 Etf  EUR 24.77  0.06  0.24%   
We consider Lyxor 1 very steady. Lyxor 1 has Sharpe Ratio of 0.0738, which conveys that the entity had a 0.0738% return per unit of risk over the last 3 months. We have found thirty technical indicators for Lyxor 1, which you can use to evaluate the volatility of the etf. Please verify Lyxor 1's Risk Adjusted Performance of 0.0377, mean deviation of 0.5839, and Downside Deviation of 0.7991 to check out if the risk estimate we provide is consistent with the expected return of 0.0556%. Key indicators related to Lyxor 1's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Lyxor 1 Etf volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Lyxor daily returns, and it is calculated using variance and standard deviation. We also use Lyxor's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lyxor 1 volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Lyxor 1 can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Lyxor 1 at lower prices. For example, an investor can purchase Lyxor stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Lyxor 1's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Lyxor Etf

  0.69UIM5 UBS Fund SolutionsPairCorr
  0.8XDJP Xtrackers Nikkei 225PairCorr
  0.79SXRZ iShares VII PLCPairCorr
  0.8VUSA Vanguard Funds PublicPairCorr
  0.79EXX7 iShares Nikkei 225PairCorr
  0.79SXR8 iShares Core SPPairCorr
  0.71IS3N iShares Core MSCIPairCorr

Moving against Lyxor Etf

  0.68DBPD Xtrackers ShortDAXPairCorr
  0.54XJSE Xtrackers IIPairCorr

Lyxor 1 Market Sensitivity And Downside Risk

Lyxor 1's beta coefficient measures the volatility of Lyxor etf compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Lyxor etf's returns against your selected market. In other words, Lyxor 1's beta of -0.21 provides an investor with an approximation of how much risk Lyxor 1 etf can potentially add to one of your existing portfolios. Lyxor 1 exhibits relatively low volatility with skewness of -0.06 and kurtosis of -0.07. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lyxor 1's etf risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lyxor 1's etf price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Lyxor 1 Demand Trend
Check current 90 days Lyxor 1 correlation with market (NYSE Composite)

Lyxor Beta

    
  -0.21  
Lyxor standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.75  
It is essential to understand the difference between upside risk (as represented by Lyxor 1's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Lyxor 1's daily returns or price. Since the actual investment returns on holding a position in lyxor etf tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Lyxor 1.

Lyxor 1 Etf Volatility Analysis

Volatility refers to the frequency at which Lyxor 1 etf price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lyxor 1's price changes. Investors will then calculate the volatility of Lyxor 1's etf to predict their future moves. A etf that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A etf with relatively stable price changes has low volatility. A highly volatile etf is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Lyxor 1's volatility:

Historical Volatility

This type of etf volatility measures Lyxor 1's fluctuations based on previous trends. It's commonly used to predict Lyxor 1's future behavior based on its past. However, it cannot conclusively determine the future direction of the etf.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Lyxor 1's current market price. This means that the etf will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Lyxor 1's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Lyxor 1 Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Lyxor 1 Projected Return Density Against Market

Assuming the 90 days trading horizon Lyxor 1 has a beta of -0.2142 suggesting as returns on the benchmark increase, returns on holding Lyxor 1 are expected to decrease at a much lower rate. During a bear market, however, Lyxor 1 is likely to outperform the market.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lyxor 1 or Commerz Funds Solutions SA sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lyxor 1's price will be affected by overall etf market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lyxor etf's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Lyxor 1 has an alpha of 0.0483, implying that it can generate a 0.0483 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Lyxor 1's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how lyxor etf's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Lyxor 1 Price Volatility?

Several factors can influence a etf's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Lyxor 1 Etf Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Lyxor 1 is 1354.57. The daily returns are distributed with a variance of 0.57 and standard deviation of 0.75. The mean deviation of Lyxor 1 is currently at 0.58. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α
Alpha over NYSE Composite
0.05
β
Beta against NYSE Composite-0.21
σ
Overall volatility
0.75
Ir
Information ratio -0.05

Lyxor 1 Etf Return Volatility

Lyxor 1 historical daily return volatility represents how much of Lyxor 1 etf's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The Exchange Traded Fund assumes 0.7528% volatility of returns over the 90 days investment horizon. By contrast, NYSE Composite accepts 0.6235% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Lyxor 1 Volatility

Volatility is a rate at which the price of Lyxor 1 or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Lyxor 1 may increase or decrease. In other words, similar to Lyxor's beta indicator, it measures the risk of Lyxor 1 and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lyxor 1 fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

3 ways to utilize Lyxor 1's volatility to invest better

Higher Lyxor 1's etf volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Lyxor 1 etf is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Lyxor 1 etf volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Lyxor 1 investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Lyxor 1's etf can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Lyxor 1's etf relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Lyxor 1 Investment Opportunity

Lyxor 1 has a volatility of 0.75 and is 1.21 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Lyxor 1 is lower than 6 percent of all global equities and portfolios over the last 90 days. You can use Lyxor 1 to protect your portfolios against small market fluctuations. The etf experiences a normal downward trend and little activity. Check odds of Lyxor 1 to be traded at €24.52 in 90 days.

Good diversification

The correlation between Lyxor 1 and NYA is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and NYA in the same portfolio, assuming nothing else is changed.

Lyxor 1 Additional Risk Indicators

The analysis of Lyxor 1's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Lyxor 1's investment and either accepting that risk or mitigating it. Along with some common measures of Lyxor 1 etf's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential etfs, we recommend comparing similar etfs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Lyxor 1 Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Lyxor 1 as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Lyxor 1's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Lyxor 1's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Lyxor 1 .
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Lyxor 1 . Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Please note, there is a significant difference between Lyxor 1's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lyxor 1 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lyxor 1's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.