Correlation Between Amundi Index and KraneShares CSI
Can any of the company-specific risk be diversified away by investing in both Amundi Index and KraneShares CSI 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 KraneShares CSI 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 KraneShares CSI China, you can compare the effects of market volatilities on Amundi Index and KraneShares CSI 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 KraneShares CSI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and KraneShares CSI.
Diversification Opportunities for Amundi Index and KraneShares CSI
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and KraneShares is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and KraneShares CSI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares CSI China 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 KraneShares CSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares CSI China has no effect on the direction of Amundi Index i.e., Amundi Index and KraneShares CSI go up and down completely randomly.
Pair Corralation between Amundi Index and KraneShares CSI
Assuming the 90 days trading horizon Amundi Index is expected to generate 5.92 times less return on investment than KraneShares CSI. But when comparing it to its historical volatility, Amundi Index Solutions is 2.65 times less risky than KraneShares CSI. It trades about 0.06 of its potential returns per unit of risk. KraneShares CSI China is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,114 in KraneShares CSI China on September 2, 2024 and sell it today you would earn a total of 290.00 from holding KraneShares CSI China or generate 26.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. KraneShares CSI China
Performance |
| Timeline |
| Amundi Index Solutions |
| KraneShares CSI China |
Amundi Index and KraneShares CSI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and KraneShares CSI
The main advantage of trading using opposite Amundi Index and KraneShares CSI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, KraneShares CSI 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 KraneShares CSI will offset losses from the drop in KraneShares CSI'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 |
| KraneShares CSI vs. Vanguard FTSE Developed | KraneShares CSI vs. Leverage Shares 2x | KraneShares CSI vs. Amundi Index Solutions | KraneShares CSI vs. Amundi Index Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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