Correlation Between WisdomTree and Amundi Index
Can any of the company-specific risk be diversified away by investing in both WisdomTree and Amundi Index 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 WisdomTree and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree SP 500 and Amundi Index Solutions, you can compare the effects of market volatilities on WisdomTree and Amundi Index 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 WisdomTree with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and Amundi Index.
Diversification Opportunities for WisdomTree and Amundi Index
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Amundi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree SP 500 and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and WisdomTree 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 WisdomTree SP 500 are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of WisdomTree i.e., WisdomTree and Amundi Index go up and down completely randomly.
Pair Corralation between WisdomTree and Amundi Index
Assuming the 90 days trading horizon WisdomTree SP 500 is expected to under-perform the Amundi Index. In addition to that, WisdomTree is 2.48 times more volatile than Amundi Index Solutions. It trades about -0.08 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.04 per unit of volatility. If you would invest 3,346 in Amundi Index Solutions on August 28, 2024 and sell it today you would earn a total of 686.00 from holding Amundi Index Solutions or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree SP 500 vs. Amundi Index Solutions
Performance |
| Timeline |
| WisdomTree SP 500 |
| Amundi Index Solutions |
WisdomTree and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and Amundi Index
The main advantage of trading using opposite WisdomTree and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| WisdomTree vs. WisdomTree Silver 3x | WisdomTree vs. Lyxor 10Y Inflation | WisdomTree vs. GraniteShares 3x Short |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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