(BX4) Lyxor CAC 40 Daily Double - Ratings and Ratios

The Lyxor UCITS CAC40 Daily Double Short (PA:BX4) is an ETF designed to provide double the inverse daily return of the CAC 40 index, a benchmark for the French stock market. This means that if the CAC 40 index falls by 1%, the ETF is expected to rise by 2%, before fees and expenses.

Analyzing the ETFs characteristics, we can infer that it is designed for traders and investors who are bearish on the French stock market or looking to hedge their long positions in the CAC 40 index. The ETFs double short exposure makes it a speculative investment, suitable for those who are willing to take on higher risks in pursuit of potentially higher returns.

Examining the ETFs , we can observe that the last price is 0.73, which is below its 20-day, 50-day, and 200-day Simple Moving Averages (SMA). This suggests that the ETF has been trending downwards in the short to long term. However, the Average True Range (ATR) is 0.04, indicating a relatively high volatility of 5.13%. This volatility, combined with the ETFs double short exposure, may result in significant losses if the CAC 40 index rises.

Using the available and , we can forecast the ETFs potential performance. If the CAC 40 index experiences a significant decline, the ETF is likely to benefit from its double short exposure. Conversely, if the index rises, the ETFs value will likely decrease. Given the current AUM of 215.26M EUR, the ETF has a moderate level of liquidity, which may help mitigate potential losses due to trading activity.

Based on the available data, a potential trading strategy could involve closely monitoring the CAC 40 index and adjusting positions accordingly. If the index is expected to decline, taking a long position in the Lyxor UCITS CAC40 Daily Double Short ETF could be considered. However, if the index is expected to rise, it may be prudent to avoid or short the ETF. A more detailed analysis of market trends, economic indicators, and other factors influencing the CAC 40 index would be necessary to make a more informed investment decision.