Correlation Between 21Shares Avalanche and Lyxor MSCI

Can any of the company-specific risk be diversified away by investing in both 21Shares Avalanche 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 21Shares Avalanche and Lyxor MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 21Shares Avalanche ETP and Lyxor MSCI Brazil, you can compare the effects of market volatilities on 21Shares Avalanche 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 21Shares Avalanche with a short position of Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Avalanche and Lyxor MSCI.

Diversification Opportunities for 21Shares Avalanche and Lyxor MSCI

0.0

Correlation Coefficient

21Shares Avalanche  Lyxor MSCI

Pay attention - limited upside

The 3 months correlation between 21Shares and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Avalanche ETP 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 21Shares Avalanche 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 21Shares Avalanche ETP 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 21Shares Avalanche i.e., 21Shares Avalanche and Lyxor MSCI go up and down completely randomly.

Pair Corralation between 21Shares Avalanche and Lyxor MSCI

If you would invest  2,007  in Lyxor MSCI Brazil on April 24, 2025 and sell it today you would earn a total of  84.00  from holding Lyxor MSCI Brazil or generate 4.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

21Shares Avalanche ETP  vs.  Lyxor MSCI Brazil

21Shares Avalanche ETP

Risk-Adjusted Performance

Modest

Over the last 90 days 21Shares Avalanche ETP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, 21Shares Avalanche is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Lyxor MSCI Brazil

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor MSCI Brazil are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Lyxor MSCI is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with 21Shares Avalanche and Lyxor MSCI

The main advantage of trading using opposite 21Shares Avalanche and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Avalanche 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.

The idea behind 21Shares Avalanche ETP and Lyxor MSCI Brazil pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.