Correlation Between Lyxor Index and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Lyxor Index 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 Index 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 Index Fund and Amundi ETF MSCI, you can compare the effects of market volatilities on Lyxor Index 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 Index with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Amundi ETF.
Diversification Opportunities for Lyxor Index and Amundi ETF
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Amundi is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund 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 Index 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 Index Fund 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 Index i.e., Lyxor Index and Amundi ETF go up and down completely randomly.
Pair Corralation between Lyxor Index and Amundi ETF
Assuming the 90 days trading horizon Lyxor Index is expected to generate 62.71 times less return on investment than Amundi ETF. In addition to that, Lyxor Index is 1.02 times more volatile than Amundi ETF MSCI. It trades about 0.01 of its total potential returns per unit of risk. Amundi ETF MSCI is currently generating about 0.42 per unit of volatility. If you would invest 56,738 in Amundi ETF MSCI on September 4, 2024 and sell it today you would earn a total of 5,002 from holding Amundi ETF MSCI or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Index Fund vs. Amundi ETF MSCI
Performance |
| Timeline |
| Lyxor Index Fund |
| Amundi ETF MSCI |
Lyxor Index and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Amundi ETF
The main advantage of trading using opposite Lyxor Index and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index 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 Index vs. Lyxor SP 500 | Lyxor Index vs. Lyxor UCITS Daily | Lyxor Index vs. Lyxor UCITS MSCI | Lyxor Index vs. Lyxor Treasury 10Y |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Stoxx 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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