Correlation Between Lyxor PEA and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Lyxor PEA and Amundi 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 Lyxor PEA and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor PEA Nasdaq and Amundi MSCI Europe, you can compare the effects of market volatilities on Lyxor PEA and Amundi 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 Lyxor PEA with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor PEA and Amundi MSCI.
Diversification Opportunities for Lyxor PEA and Amundi MSCI
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Amundi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor PEA Nasdaq and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe and Lyxor PEA 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 PEA Nasdaq are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Europe has no effect on the direction of Lyxor PEA i.e., Lyxor PEA and Amundi MSCI go up and down completely randomly.
Pair Corralation between Lyxor PEA and Amundi MSCI
Assuming the 90 days trading horizon Lyxor PEA Nasdaq is expected to generate 1.56 times more return on investment than Amundi MSCI. However, Lyxor PEA is 1.56 times more volatile than Amundi MSCI Europe. It trades about 0.11 of its potential returns per unit of risk. Amundi MSCI Europe is currently generating about 0.08 per unit of risk. If you would invest 5,390 in Lyxor PEA Nasdaq on September 1, 2024 and sell it today you would earn a total of 2,563 from holding Lyxor PEA Nasdaq or generate 47.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor PEA Nasdaq vs. Amundi MSCI Europe
Performance |
| Timeline |
| Lyxor PEA Nasdaq |
| Amundi MSCI Europe |
Lyxor PEA and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor PEA and Amundi MSCI
The main advantage of trading using opposite Lyxor PEA and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor PEA position performs unexpectedly, Amundi 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 Amundi MSCI will offset losses from the drop in Amundi MSCI's long position.| Lyxor PEA vs. Lyxor SP 500 | Lyxor PEA vs. Lyxor UCITS Daily | Lyxor PEA vs. Lyxor UCITS MSCI | Lyxor PEA vs. Lyxor Treasury 10Y |
| Amundi MSCI vs. Amundi ETF MSCI | Amundi MSCI vs. Lyxor UCITS Stoxx | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi MSCI Europe |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |