Correlation Between Ekinops SA and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Ekinops SA 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 Ekinops SA and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Lyxor MSCI Brazil, you can compare the effects of market volatilities on Ekinops SA 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 Ekinops SA with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Lyxor MSCI.
Diversification Opportunities for Ekinops SA and Lyxor MSCI
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ekinops and Lyxor is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA 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 Ekinops SA 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 Ekinops SA 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 Ekinops SA i.e., Ekinops SA and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Ekinops SA and Lyxor MSCI
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Lyxor MSCI. In addition to that, Ekinops SA is 1.38 times more volatile than Lyxor MSCI Brazil. It trades about -0.26 of its total potential returns per unit of risk. Lyxor MSCI Brazil is currently generating about -0.09 per unit of volatility. If you would invest 1,828 in Lyxor MSCI Brazil on September 2, 2024 and sell it today you would lose (64.00) from holding Lyxor MSCI Brazil or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Lyxor MSCI Brazil
Performance |
| Timeline |
| Ekinops SA |
| Lyxor MSCI Brazil |
Ekinops SA and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Lyxor MSCI
The main advantage of trading using opposite Ekinops SA and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA 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.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Lyxor MSCI vs. Manitou BF SA | Lyxor MSCI vs. Granite 3x LVMH | 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Positions Ratings 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 | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |