Correlation Between SPDR Barclays and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays 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 SPDR Barclays and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays 10 and Lyxor MSCI World, you can compare the effects of market volatilities on SPDR Barclays 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 SPDR Barclays with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Lyxor MSCI.
Diversification Opportunities for SPDR Barclays and Lyxor MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays 10 and Lyxor MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI World and SPDR Barclays 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 SPDR Barclays 10 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 World has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Lyxor MSCI go up and down completely randomly.
Pair Corralation between SPDR Barclays and Lyxor MSCI
If you would invest 2,776 in SPDR Barclays 10 on August 31, 2024 and sell it today you would lose (1.00) from holding SPDR Barclays 10 or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
SPDR Barclays 10 vs. Lyxor MSCI World
Performance |
| Timeline |
| SPDR Barclays 10 |
| Lyxor MSCI World |
SPDR Barclays and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Lyxor MSCI
The main advantage of trading using opposite SPDR Barclays and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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.| SPDR Barclays vs. SPDR Dow Jones | SPDR Barclays vs. SPDR SP Dividend | SPDR Barclays vs. SPDR Barclays Euro | SPDR Barclays vs. SPDR SP Consumer |
| Lyxor MSCI vs. Lyxor Smart Overnight | Lyxor MSCI vs. Lyxor UCITS EuroMTS | Lyxor MSCI vs. Lyxor Core UK | Lyxor MSCI vs. Lyxor Core Global |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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