Correlation Between IShares Core and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core MSCI and Lyxor UCITS Stoxx, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Lyxor UCITS.
Diversification Opportunities for IShares Core and Lyxor UCITS
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Lyxor is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI and Lyxor UCITS Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Stoxx and IShares Core 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 iShares Core MSCI 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 Stoxx has no effect on the direction of IShares Core i.e., IShares Core and Lyxor UCITS go up and down completely randomly.
Pair Corralation between IShares Core and Lyxor UCITS
Assuming the 90 days trading horizon iShares Core MSCI is expected to generate 1.09 times more return on investment than Lyxor UCITS. However, IShares Core is 1.09 times more volatile than Lyxor UCITS Stoxx. It trades about 0.06 of its potential returns per unit of risk. Lyxor UCITS Stoxx is currently generating about 0.06 per unit of risk. If you would invest 3,040 in iShares Core MSCI on June 5, 2025 and sell it today you would earn a total of 1,020 from holding iShares Core MSCI or generate 33.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core MSCI vs. Lyxor UCITS Stoxx
Performance |
| Timeline |
| iShares Core MSCI |
| Lyxor UCITS Stoxx |
IShares Core and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Lyxor UCITS
The main advantage of trading using opposite IShares Core and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC | IShares Core vs. iShares iBonds Dec |
| Lyxor UCITS vs. UBSFund Solutions MSCI | Lyxor UCITS vs. Vanguard SP 500 | Lyxor UCITS vs. iShares VII PLC | Lyxor UCITS 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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