Correlation Between Amundi Index and IShares VII
Can any of the company-specific risk be diversified away by investing in both Amundi Index and IShares VII 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 VII 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 VII PLC, you can compare the effects of market volatilities on Amundi Index and IShares VII 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 VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and IShares VII.
Diversification Opportunities for Amundi Index and IShares VII
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and IShares is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and iShares VII PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII PLC 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 VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII PLC has no effect on the direction of Amundi Index i.e., Amundi Index and IShares VII go up and down completely randomly.
Pair Corralation between Amundi Index and IShares VII
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the IShares VII. In addition to that, Amundi Index is 1.9 times more volatile than iShares VII PLC. It trades about -0.1 of its total potential returns per unit of risk. iShares VII PLC is currently generating about 0.11 per unit of volatility. If you would invest 14,414 in iShares VII PLC on September 2, 2024 and sell it today you would earn a total of 139.00 from holding iShares VII PLC or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. iShares VII PLC
Performance |
| Timeline |
| Amundi Index Solutions |
| iShares VII PLC |
Amundi Index and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and IShares VII
The main advantage of trading using opposite Amundi Index and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, IShares VII 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 VII will offset losses from the drop in IShares VII's long position.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| IShares VII vs. iShares MSCI Japan | IShares VII vs. iShares JP Morgan | IShares VII vs. iShares MSCI Europe | IShares VII vs. iShares Nasdaq Biotechnology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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