Correlation Between Lyxor 1 and Global PVQ
Can any of the company-specific risk be diversified away by investing in both Lyxor 1 and Global PVQ 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 Global PVQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor 1 and Global PVQ SE, you can compare the effects of market volatilities on Lyxor 1 and Global PVQ 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 Global PVQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor 1 and Global PVQ.
Diversification Opportunities for Lyxor 1 and Global PVQ
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor 1 and Global PVQ SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global PVQ SE 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 Global PVQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global PVQ SE has no effect on the direction of Lyxor 1 i.e., Lyxor 1 and Global PVQ go up and down completely randomly.
Pair Corralation between Lyxor 1 and Global PVQ
Assuming the 90 days trading horizon Lyxor 1 is expected to under-perform the Global PVQ. But the etf apears to be less risky and, when comparing its historical volatility, Lyxor 1 is 13.38 times less risky than Global PVQ. The etf trades about -0.13 of its potential returns per unit of risk. The Global PVQ SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.35 in Global PVQ SE on August 20, 2025 and sell it today you would earn a total of 0.10 from holding Global PVQ SE or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor 1 vs. Global PVQ SE
Performance |
| Timeline |
| Lyxor 1 |
| Global PVQ SE |
Lyxor 1 and Global PVQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor 1 and Global PVQ
The main advantage of trading using opposite Lyxor 1 and Global PVQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor 1 position performs unexpectedly, Global PVQ 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 Global PVQ will offset losses from the drop in Global PVQ's long position.| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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