Correlation Between Lyxor MSCI and Lyxor Smart
Can any of the company-specific risk be diversified away by investing in both Lyxor MSCI and Lyxor Smart 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 MSCI and Lyxor Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor MSCI China and Lyxor Smart Overnight, you can compare the effects of market volatilities on Lyxor MSCI and Lyxor Smart 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 MSCI with a short position of Lyxor Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor MSCI and Lyxor Smart.
Diversification Opportunities for Lyxor MSCI and Lyxor Smart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyxor and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor MSCI China and Lyxor Smart Overnight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Smart Overnight and Lyxor 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 Lyxor MSCI China are associated (or correlated) with Lyxor Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Smart Overnight has no effect on the direction of Lyxor MSCI i.e., Lyxor MSCI and Lyxor Smart go up and down completely randomly.
Pair Corralation between Lyxor MSCI and Lyxor Smart
If you would invest 121,495 in Lyxor Smart Overnight on August 31, 2024 and sell it today you would earn a total of 530.00 from holding Lyxor Smart Overnight or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor MSCI China vs. Lyxor Smart Overnight
Performance |
| Timeline |
| Lyxor MSCI China |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Lyxor Smart Overnight |
Lyxor MSCI and Lyxor Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor MSCI and Lyxor Smart
The main advantage of trading using opposite Lyxor MSCI and Lyxor Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor MSCI position performs unexpectedly, Lyxor Smart 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 Smart will offset losses from the drop in Lyxor Smart's long position.| Lyxor MSCI vs. Lyxor Smart Overnight | Lyxor MSCI vs. Lyxor UCITS EuroMTS | Lyxor MSCI vs. Lyxor Core UK | Lyxor MSCI vs. Lyxor Core Global |
| Lyxor Smart vs. Lyxor UCITS EuroMTS | Lyxor Smart vs. Lyxor Core UK | Lyxor Smart vs. Lyxor Core Global | Lyxor Smart vs. Lyxor UCITS iBoxx |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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