Correlation Between IShares Core and LYXOR EURO
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By analyzing existing cross correlation between iShares Core MSCI and LYXOR EURO STOXX, you can compare the effects of market volatilities on IShares Core and LYXOR EURO 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 IShares Core with a short position of LYXOR EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and LYXOR EURO.
Diversification Opportunities for IShares Core and LYXOR EURO
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and LYXOR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and LYXOR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYXOR EURO STOXX and IShares Core 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 iShares Core MSCI are associated (or correlated) with LYXOR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYXOR EURO STOXX has no effect on the direction of IShares Core i.e., IShares Core and LYXOR EURO go up and down completely randomly.
Pair Corralation between IShares Core and LYXOR EURO
Assuming the 90 days trading horizon iShares Core MSCI is expected to generate 0.45 times more return on investment than LYXOR EURO. However, iShares Core MSCI is 2.22 times less risky than LYXOR EURO. It trades about 0.11 of its potential returns per unit of risk. LYXOR EURO STOXX is currently generating about 0.01 per unit of risk. If you would invest 426.00 in iShares Core MSCI on September 4, 2024 and sell it today you would earn a total of 30.00 from holding iShares Core MSCI or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core MSCI vs. LYXOR EURO STOXX
Performance |
| Timeline |
| iShares Core MSCI |
| LYXOR EURO STOXX |
IShares Core and LYXOR EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and LYXOR EURO
The main advantage of trading using opposite IShares Core and LYXOR EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, LYXOR EURO 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 EURO will offset losses from the drop in LYXOR EURO's long position.| IShares Core vs. UBS Fund Solutions | IShares Core vs. Xtrackers II | IShares Core vs. Xtrackers Nikkei 225 | IShares Core vs. iShares VII PLC |
| LYXOR EURO vs. UBS Fund Solutions | LYXOR EURO vs. Xtrackers II | LYXOR EURO vs. Xtrackers Nikkei 225 | LYXOR EURO vs. iShares VII PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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