Correlation Between Xtrackers MSCI and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and Lyxor UCITS 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 Xtrackers MSCI and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI Europe and Lyxor UCITS FTSE, you can compare the effects of market volatilities on Xtrackers MSCI and Lyxor UCITS 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 Xtrackers MSCI with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Lyxor UCITS.
Diversification Opportunities for Xtrackers MSCI and Lyxor UCITS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI Europe and Lyxor UCITS FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS FTSE and Xtrackers MSCI 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 Xtrackers MSCI Europe are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS FTSE has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Lyxor UCITS
If you would invest 2,826 in Lyxor UCITS FTSE on August 30, 2024 and sell it today you would earn a total of 357.00 from holding Lyxor UCITS FTSE or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Xtrackers MSCI Europe vs. Lyxor UCITS FTSE
Performance |
| Timeline |
| Xtrackers MSCI Europe |
| Lyxor UCITS FTSE |
Xtrackers MSCI and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Lyxor UCITS
The main advantage of trading using opposite Xtrackers MSCI and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, Lyxor UCITS 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 UCITS will offset losses from the drop in Lyxor UCITS's long position.| Xtrackers MSCI vs. Manitou BF SA | Xtrackers MSCI vs. Ossiam Minimum Variance | Xtrackers MSCI vs. Ekinops SA | Xtrackers MSCI vs. Orapi SA |
| Lyxor UCITS vs. Amundi FTSE EPRANAREIT | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor UCITS Stoxx | Lyxor UCITS vs. Lyxor Index Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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