Correlation Between Lyxor UCITS and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS 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 UCITS 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 UCITS Dow and Amundi ETF MSCI, you can compare the effects of market volatilities on Lyxor UCITS 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 UCITS with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Amundi ETF.
Diversification Opportunities for Lyxor UCITS and Amundi ETF
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Lyxor and Amundi is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS Dow and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and Lyxor UCITS 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 UCITS Dow 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 MSCI has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Amundi ETF go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Amundi ETF
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 1.25 times less return on investment than Amundi ETF. But when comparing it to its historical volatility, Lyxor UCITS Dow is 1.01 times less risky than Amundi ETF. It trades about 0.09 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 41,696 in Amundi ETF MSCI on September 4, 2024 and sell it today you would earn a total of 20,044 from holding Amundi ETF MSCI or generate 48.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS Dow vs. Amundi ETF MSCI
Performance |
| Timeline |
| Lyxor UCITS Dow |
| Amundi ETF MSCI |
Lyxor UCITS and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Amundi ETF
The main advantage of trading using opposite Lyxor UCITS and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS 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 UCITS vs. Multi Units Luxembourg | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor MSCI China | Lyxor UCITS vs. Multi Units Luxembourg |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Stoxx Europe |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |