Correlation Between Lyxor CAC and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Lyxor CAC and Amundi MSCI 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 CAC and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor CAC 40 and Amundi MSCI World, you can compare the effects of market volatilities on Lyxor CAC and Amundi MSCI 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 CAC with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor CAC and Amundi MSCI.
Diversification Opportunities for Lyxor CAC and Amundi MSCI
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Amundi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor CAC 40 and Amundi MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI World and Lyxor CAC 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 CAC 40 are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI World has no effect on the direction of Lyxor CAC i.e., Lyxor CAC and Amundi MSCI go up and down completely randomly.
Pair Corralation between Lyxor CAC and Amundi MSCI
Assuming the 90 days trading horizon Lyxor CAC is expected to generate 2.88 times less return on investment than Amundi MSCI. In addition to that, Lyxor CAC is 1.11 times more volatile than Amundi MSCI World. It trades about 0.03 of its total potential returns per unit of risk. Amundi MSCI World is currently generating about 0.08 per unit of volatility. If you would invest 7,571 in Amundi MSCI World on October 7, 2024 and sell it today you would earn a total of 2,615 from holding Amundi MSCI World or generate 34.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lyxor CAC 40 vs. Amundi MSCI World
Performance |
| Timeline |
| Lyxor CAC 40 |
| Amundi MSCI World |
Lyxor CAC and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor CAC and Amundi MSCI
The main advantage of trading using opposite Lyxor CAC and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor CAC position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.| Lyxor CAC vs. Amundi Index Solutions | Lyxor CAC vs. Amundi Index Solutions | Lyxor CAC vs. Amundi MSCI Europe | Lyxor CAC vs. Manitou BF SA |
| Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Multi Units France | Amundi MSCI vs. AMUNDI MSCI USA | Amundi MSCI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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