Correlation Between Lyxor MSCI and Lyxor Treasury
Can any of the company-specific risk be diversified away by investing in both Lyxor MSCI and Lyxor Treasury 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 Lyxor Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor MSCI Eastern and Lyxor Treasury 10Y, you can compare the effects of market volatilities on Lyxor MSCI and Lyxor Treasury 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 Lyxor Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor MSCI and Lyxor Treasury.
Diversification Opportunities for Lyxor MSCI and Lyxor Treasury
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor MSCI Eastern and Lyxor Treasury 10Y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Treasury 10Y 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 Eastern are associated (or correlated) with Lyxor Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Treasury 10Y has no effect on the direction of Lyxor MSCI i.e., Lyxor MSCI and Lyxor Treasury go up and down completely randomly.
Pair Corralation between Lyxor MSCI and Lyxor Treasury
If you would invest 802,550 in Lyxor Treasury 10Y on November 29, 2024 and sell it today you would earn a total of 17,300 from holding Lyxor Treasury 10Y or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor MSCI Eastern vs. Lyxor Treasury 10Y
Performance |
| Timeline |
| Lyxor MSCI Eastern |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lyxor Treasury 10Y |
Lyxor MSCI and Lyxor Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor MSCI and Lyxor Treasury
The main advantage of trading using opposite Lyxor MSCI and Lyxor Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor MSCI position performs unexpectedly, Lyxor Treasury 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 Lyxor Treasury will offset losses from the drop in Lyxor Treasury's long position.| Lyxor MSCI vs. Lyxor Smart Overnight | Lyxor MSCI vs. Lyxor UCITS EuroMTS | Lyxor MSCI vs. Lyxor Core UK | Lyxor MSCI vs. Lyxor Core Global |
| Lyxor Treasury vs. Lyxor Smart Overnight | Lyxor Treasury vs. Lyxor UCITS EuroMTS | Lyxor Treasury vs. Lyxor Core UK | Lyxor Treasury vs. Lyxor Core Global |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |