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 NASDAQ 100 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
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Amundi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS NASDAQ 100 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 NASDAQ 100 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 NASDAQ 100 is expected to generate 2.41 times more return on investment than Amundi ETF. However, Lyxor UCITS is 2.41 times more volatile than Amundi ETF MSCI. It trades about 0.11 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.0 per unit of risk. If you would invest 54,320 in Lyxor UCITS NASDAQ 100 on August 29, 2024 and sell it today you would earn a total of 70,760 from holding Lyxor UCITS NASDAQ 100 or generate 130.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS NASDAQ 100 vs. Amundi ETF MSCI
Performance |
| Timeline |
| Lyxor UCITS NASDAQ |
| 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. Lyxor UCITS Daily | Lyxor UCITS vs. Amundi ETF Leveraged | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Lyxor UCITS CAC |
| Amundi ETF vs. Amundi ETF DAX | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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