This module allows you to analyze existing cross correlation between Lyxor MSCI EMU Growth ETF D EUR and Facebook Inc. You can compare the effects of market volatilities on Lyxor MSCI and Facebook 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 MSCI with a short position of Facebook. See also your portfolio center
. Please also check ongoing floating volatility patterns of Lyxor MSCI
Lyxor MSCI EMU Growth ETF D EU vs Facebook Inc
Assuming 30 trading days horizon, Lyxor MSCI EMU Growth ETF D EUR is expected to generate 0.55 times more return on investment than Facebook. However, Lyxor MSCI EMU Growth ETF D EUR is 1.8 times less risky than Facebook. It trades about -0.11 of its potential returns per unit of risk. Facebook Inc is currently generating about -0.19 per unit of risk. If you would invest 12,444 in Lyxor MSCI EMU Growth ETF D EUR on February 21, 2018 and sell it today you would lose (392.00) from holding Lyxor MSCI EMU Growth ETF D EUR or give up 3.15% of portfolio value over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Lyxor MSCI EMU Growth ETF D EU and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and Lyxor 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 Lyxor MSCI EMU Growth ETF D EUR are associated (or correlated) with Facebook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facebook Inc has no effect on the direction of Lyxor MSCI i.e. Lyxor MSCI and Facebook go up and down completely randomly.
Over the last 30 days Lyxor MSCI EMU Growth ETF D EUR has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Facebook Inc has generated negative risk-adjusted returns adding no value to investors with long positions.