Correlation Between Lyxor MSCI and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Lyxor MSCI and Amundi 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 MSCI and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor MSCI China and Amundi ETF Leveraged, you can compare the effects of market volatilities on Lyxor MSCI and Amundi 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 MSCI with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor MSCI and Amundi ETF.
Diversification Opportunities for Lyxor MSCI and Amundi ETF
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lyxor and Amundi is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor MSCI China and Amundi ETF Leveraged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF Leveraged and Lyxor MSCI 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 MSCI China are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF Leveraged has no effect on the direction of Lyxor MSCI i.e., Lyxor MSCI and Amundi ETF go up and down completely randomly.
Pair Corralation between Lyxor MSCI and Amundi ETF
Assuming the 90 days trading horizon Lyxor MSCI China is expected to generate 0.97 times more return on investment than Amundi ETF. However, Lyxor MSCI China is 1.03 times less risky than Amundi ETF. It trades about 0.2 of its potential returns per unit of risk. Amundi ETF Leveraged is currently generating about -0.02 per unit of risk. If you would invest 9,063 in Lyxor MSCI China on November 30, 2024 and sell it today you would earn a total of 1,369 from holding Lyxor MSCI China or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor MSCI China vs. Amundi ETF Leveraged
Performance |
| Timeline |
| Lyxor MSCI China |
| Amundi ETF Leveraged |
Lyxor MSCI and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor MSCI and Amundi ETF
The main advantage of trading using opposite Lyxor MSCI and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor MSCI position performs unexpectedly, Amundi 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| Lyxor MSCI vs. Lyxor SP 500 | Lyxor MSCI vs. Lyxor UCITS Daily | Lyxor MSCI vs. Lyxor UCITS MSCI | Lyxor MSCI vs. Lyxor Treasury 10Y |
| Amundi ETF vs. Lyxor UCITS NASDAQ 100 | Amundi ETF vs. Lyxor UCITS Daily | Amundi ETF vs. Lyxor UCITS Stoxx | Amundi ETF vs. Amundi Index Solutions |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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