Correlation Between Multi Units and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Multi Units and Lyxor UCITS 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 Multi Units and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units France and Lyxor UCITS MSCI, you can compare the effects of market volatilities on Multi Units and Lyxor UCITS 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 Multi Units with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and Lyxor UCITS.
Diversification Opportunities for Multi Units and Lyxor UCITS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi and Lyxor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units France and Lyxor UCITS MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS MSCI and Multi Units 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 Multi Units France are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS MSCI has no effect on the direction of Multi Units i.e., Multi Units and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Multi Units and Lyxor UCITS
Assuming the 90 days trading horizon Multi Units France is expected to under-perform the Lyxor UCITS. But the etf apears to be less risky and, when comparing its historical volatility, Multi Units France is 1.14 times less risky than Lyxor UCITS. The etf trades about -0.08 of its potential returns per unit of risk. The Lyxor UCITS MSCI is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 34,564 in Lyxor UCITS MSCI on August 28, 2024 and sell it today you would earn a total of 1,714 from holding Lyxor UCITS MSCI or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units France vs. Lyxor UCITS MSCI
Performance |
| Timeline |
| Multi Units France |
| Lyxor UCITS MSCI |
Multi Units and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and Lyxor UCITS
The main advantage of trading using opposite Multi Units and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Multi Units vs. Lyxor UCITS MSCI | Multi Units vs. Lyxor UCITS Stoxx | Multi Units vs. Multi Units France | Multi Units vs. Lyxor MSCI Brazil |
| Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Multi Units France | Lyxor UCITS vs. Amundi Index Solutions |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |