Correlation Between Amundi Index and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Lyxor 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 Amundi Index and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Lyxor MSCI Brazil, you can compare the effects of market volatilities on Amundi Index and Lyxor 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 Amundi Index with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Lyxor MSCI.
Diversification Opportunities for Amundi Index and Lyxor MSCI
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Lyxor is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Lyxor MSCI Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI Brazil and Amundi Index 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 Index Solutions are associated (or correlated) with Lyxor MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor MSCI Brazil has no effect on the direction of Amundi Index i.e., Amundi Index and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Amundi Index and Lyxor MSCI
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.52 times more return on investment than Lyxor MSCI. However, Amundi Index Solutions is 1.91 times less risky than Lyxor MSCI. It trades about 0.43 of its potential returns per unit of risk. Lyxor MSCI Brazil is currently generating about -0.15 per unit of risk. If you would invest 53,380 in Amundi Index Solutions on September 4, 2024 and sell it today you would earn a total of 4,501 from holding Amundi Index Solutions or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Lyxor MSCI Brazil
Performance |
| Timeline |
| Amundi Index Solutions |
| Lyxor MSCI Brazil |
Amundi Index and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Lyxor MSCI
The main advantage of trading using opposite Amundi Index and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Lyxor 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 Lyxor MSCI will offset losses from the drop in Lyxor MSCI's long position.| Amundi Index vs. Amundi ETF PEA | Amundi Index vs. Amundi ETF PEA | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi ETF PEA |
| Lyxor MSCI vs. Amundi Index Solutions | Lyxor MSCI vs. Manitou BF SA | Lyxor MSCI vs. 21Shares Polkadot ETP | Lyxor MSCI vs. Ekinops SA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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