Correlation Between Lyxor Treasury and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Lyxor Treasury 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 Lyxor Treasury and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Treasury 10Y and Lyxor MSCI Eastern, you can compare the effects of market volatilities on Lyxor Treasury 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 Lyxor Treasury with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Treasury and Lyxor MSCI.
Diversification Opportunities for Lyxor Treasury and Lyxor MSCI
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 Treasury 10Y and Lyxor MSCI Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI Eastern and Lyxor Treasury 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 Treasury 10Y 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 Eastern has no effect on the direction of Lyxor Treasury i.e., Lyxor Treasury and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Lyxor Treasury and Lyxor MSCI
If you would invest (100.00) in Lyxor MSCI Eastern on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Lyxor MSCI Eastern or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lyxor Treasury 10Y vs. Lyxor MSCI Eastern
Performance |
| Timeline |
| Lyxor Treasury 10Y |
| Lyxor MSCI Eastern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lyxor Treasury and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Treasury and Lyxor MSCI
The main advantage of trading using opposite Lyxor Treasury and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Treasury 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.| Lyxor Treasury vs. GraniteShares 3x Short | Lyxor Treasury vs. WisdomTree Natural Gas | Lyxor Treasury vs. Leverage Shares 3x | Lyxor Treasury vs. WisdomTree Natural Gas |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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