Correlation Between LS 1x and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both LS 1x and Amundi 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 LS 1x and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LS 1x Amazon and Amundi MSCI World, you can compare the effects of market volatilities on LS 1x and Amundi 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 LS 1x with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of LS 1x and Amundi MSCI.
Diversification Opportunities for LS 1x and Amundi MSCI
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 1AMZ and Amundi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding LS 1x Amazon and Amundi MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI World and LS 1x 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 LS 1x Amazon are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI World has no effect on the direction of LS 1x i.e., LS 1x and Amundi MSCI go up and down completely randomly.
Pair Corralation between LS 1x and Amundi MSCI
Assuming the 90 days trading horizon LS 1x Amazon is expected to generate 2.77 times more return on investment than Amundi MSCI. However, LS 1x is 2.77 times more volatile than Amundi MSCI World. It trades about 0.09 of its potential returns per unit of risk. Amundi MSCI World is currently generating about 0.1 per unit of risk. If you would invest 276.00 in LS 1x Amazon on August 30, 2024 and sell it today you would earn a total of 353.00 from holding LS 1x Amazon or generate 127.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
LS 1x Amazon vs. Amundi MSCI World
Performance |
| Timeline |
| LS 1x Amazon |
| Amundi MSCI World |
LS 1x and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LS 1x and Amundi MSCI
The main advantage of trading using opposite LS 1x and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LS 1x position performs unexpectedly, Amundi 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 Amundi MSCI will offset losses from the drop in Amundi MSCI's long position.| LS 1x vs. iShares MSCI Japan | LS 1x vs. Amundi EUR High | LS 1x vs. iShares JP Morgan | LS 1x vs. Xtrackers MSCI |
| Amundi MSCI vs. Amundi EUR High | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi MSCI Pacific | Amundi MSCI vs. Amundi MSCI Europe |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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