Correlation Between Xtrackers Switzerland and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Xtrackers Switzerland 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 Switzerland 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 Switzerland UCITS and Lyxor MSCI Emerging, you can compare the effects of market volatilities on Xtrackers Switzerland 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 Switzerland with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Switzerland and Lyxor MSCI.
Diversification Opportunities for Xtrackers Switzerland and Lyxor MSCI
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Lyxor is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Switzerland UCITS and Lyxor MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI Emerging and Xtrackers Switzerland 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 Switzerland UCITS 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 Emerging has no effect on the direction of Xtrackers Switzerland i.e., Xtrackers Switzerland and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Xtrackers Switzerland and Lyxor MSCI
Assuming the 90 days trading horizon Xtrackers Switzerland is expected to generate 2.99 times less return on investment than Lyxor MSCI. But when comparing it to its historical volatility, Xtrackers Switzerland UCITS is 1.73 times less risky than Lyxor MSCI. It trades about 0.02 of its potential returns per unit of risk. Lyxor MSCI Emerging is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Lyxor MSCI Emerging on September 4, 2024 and sell it today you would earn a total of 185.00 from holding Lyxor MSCI Emerging or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.58% |
| Values | Daily Returns |
Xtrackers Switzerland UCITS vs. Lyxor MSCI Emerging
Performance |
| Timeline |
| Xtrackers Switzerland |
| Lyxor MSCI Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Xtrackers Switzerland and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Switzerland and Lyxor MSCI
The main advantage of trading using opposite Xtrackers Switzerland and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Switzerland 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 Switzerland vs. UBSFund Solutions MSCI | Xtrackers Switzerland vs. Vanguard SP 500 | Xtrackers Switzerland vs. iShares VII PLC | Xtrackers Switzerland vs. iShares Core SP |
| Lyxor MSCI vs. UBSFund Solutions MSCI | Lyxor MSCI vs. Vanguard SP 500 | Lyxor MSCI vs. iShares VII PLC | Lyxor MSCI vs. iShares Core SP |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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