Correlation Between Xtrackers Russell and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Xtrackers Russell 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 Xtrackers Russell and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Russell 2000 and Lyxor MSCI Brazil, you can compare the effects of market volatilities on Xtrackers Russell 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 Xtrackers Russell with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Russell and Lyxor MSCI.
Diversification Opportunities for Xtrackers Russell and Lyxor MSCI
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 Russell 2000 and Lyxor MSCI Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI Brazil and Xtrackers Russell 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 Russell 2000 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 Brazil has no effect on the direction of Xtrackers Russell i.e., Xtrackers Russell and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Xtrackers Russell and Lyxor MSCI
If you would invest 27,165 in Xtrackers Russell 2000 on September 5, 2024 and sell it today you would earn a total of 4,390 from holding Xtrackers Russell 2000 or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xtrackers Russell 2000 vs. Lyxor MSCI Brazil
Performance |
| Timeline |
| Xtrackers Russell 2000 |
| Lyxor MSCI Brazil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers Russell and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Russell and Lyxor MSCI
The main advantage of trading using opposite Xtrackers Russell and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Russell 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.| Xtrackers Russell vs. UBSFund Solutions MSCI | Xtrackers Russell vs. Vanguard SP 500 | Xtrackers Russell vs. iShares Core SP | Xtrackers Russell vs. Lyxor Japan UCITS |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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