Correlation Between Amundi Index and IShares II
Can any of the company-specific risk be diversified away by investing in both Amundi Index and IShares II 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 Amundi Index and IShares II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and iShares II Public, you can compare the effects of market volatilities on Amundi Index and IShares II 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 Amundi Index with a short position of IShares II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and IShares II.
Diversification Opportunities for Amundi Index and IShares II
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and IShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and iShares II Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares II Public and Amundi Index 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 Amundi Index Solutions are associated (or correlated) with IShares II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares II Public has no effect on the direction of Amundi Index i.e., Amundi Index and IShares II go up and down completely randomly.
Pair Corralation between Amundi Index and IShares II
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.92 times more return on investment than IShares II. However, Amundi Index Solutions is 1.08 times less risky than IShares II. It trades about 0.1 of its potential returns per unit of risk. iShares II Public is currently generating about 0.05 per unit of risk. If you would invest 9,447 in Amundi Index Solutions on November 28, 2024 and sell it today you would earn a total of 1,647 from holding Amundi Index Solutions or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. iShares II Public
Performance |
| Timeline |
| Amundi Index Solutions |
| iShares II Public |
Amundi Index and IShares II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and IShares II
The main advantage of trading using opposite Amundi Index and IShares II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, IShares II 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 IShares II will offset losses from the drop in IShares II's long position.| Amundi Index vs. Amundi MSCI Japan | Amundi Index vs. Amundi MSCI World | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Physical Gold |
| IShares II vs. iShares SP 500 | IShares II vs. iShares Euro Dividend | IShares II vs. iShares Core MSCI | IShares II vs. iShares AEX UCITS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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