Correlation Between WisdomTree and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both WisdomTree and Amundi Nasdaq 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 Nasdaq 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 Nasdaq 100 UCITS, you can compare the effects of market volatilities on WisdomTree and Amundi Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and Amundi Nasdaq.
Diversification Opportunities for WisdomTree and Amundi Nasdaq
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Amundi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree SP 500 and Amundi Nasdaq 100 UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Nasdaq 100 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Nasdaq 100 has no effect on the direction of WisdomTree i.e., WisdomTree and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between WisdomTree and Amundi Nasdaq
Assuming the 90 days trading horizon WisdomTree SP 500 is expected to under-perform the Amundi Nasdaq. In addition to that, WisdomTree is 2.38 times more volatile than Amundi Nasdaq 100 UCITS. It trades about -0.09 of its total potential returns per unit of risk. Amundi Nasdaq 100 UCITS is currently generating about 0.1 per unit of volatility. If you would invest 1,329,250 in Amundi Nasdaq 100 UCITS on September 12, 2024 and sell it today you would earn a total of 585,950 from holding Amundi Nasdaq 100 UCITS or generate 44.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
WisdomTree SP 500 vs. Amundi Nasdaq 100 UCITS
Performance |
| Timeline |
| WisdomTree SP 500 |
| Amundi Nasdaq 100 |
WisdomTree and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and Amundi Nasdaq
The main advantage of trading using opposite WisdomTree and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, Amundi Nasdaq 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 Nasdaq will offset losses from the drop in Amundi Nasdaq's long position.| WisdomTree vs. WisdomTree Zinc | WisdomTree vs. WisdomTree Brent Crude | WisdomTree vs. WisdomTree Aluminium 2x | WisdomTree vs. WisdomTree Enhanced Commodity |
| Amundi Nasdaq vs. Amundi EUR High | Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi MSCI Pacific | Amundi Nasdaq 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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