Correlation Between Amundi MSCI and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Lyxor UCITS 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 Amundi MSCI and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi MSCI Europe and Lyxor UCITS Daily, you can compare the effects of market volatilities on Amundi MSCI and Lyxor UCITS 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 Amundi MSCI with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Lyxor UCITS.
Diversification Opportunities for Amundi MSCI and Lyxor UCITS
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Lyxor is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI Europe and Lyxor UCITS Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Daily and Amundi 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 Amundi MSCI Europe are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Daily has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Amundi MSCI and Lyxor UCITS
Assuming the 90 days trading horizon Amundi MSCI is expected to generate 2.63 times less return on investment than Lyxor UCITS. In addition to that, Amundi MSCI is 1.11 times more volatile than Lyxor UCITS Daily. It trades about 0.04 of its total potential returns per unit of risk. Lyxor UCITS Daily is currently generating about 0.12 per unit of volatility. If you would invest 1,080 in Lyxor UCITS Daily on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Lyxor UCITS Daily or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi MSCI Europe vs. Lyxor UCITS Daily
Performance |
| Timeline |
| Amundi MSCI Europe |
| Lyxor UCITS Daily |
Amundi MSCI and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Lyxor UCITS
The main advantage of trading using opposite Amundi MSCI and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Amundi MSCI vs. Amundi ETF MSCI | Amundi MSCI vs. Amundi MSCI Europe | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Index Solutions |
| Lyxor UCITS vs. Lyxor UCITS CAC | Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor UCITS Stoxx |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |