Correlation Between Amundi Index and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Amundi Index and SPDR SP 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 SPDR SP 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 SPDR SP Dividend, you can compare the effects of market volatilities on Amundi Index and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and SPDR SP.
Diversification Opportunities for Amundi Index and SPDR SP
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and SPDR is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and SPDR SP Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Dividend 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Dividend has no effect on the direction of Amundi Index i.e., Amundi Index and SPDR SP go up and down completely randomly.
Pair Corralation between Amundi Index and SPDR SP
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 1.48 times more return on investment than SPDR SP. However, Amundi Index is 1.48 times more volatile than SPDR SP Dividend. It trades about 0.1 of its potential returns per unit of risk. SPDR SP Dividend is currently generating about 0.12 per unit of risk. If you would invest 320,750 in Amundi Index Solutions on November 9, 2024 and sell it today you would earn a total of 6,575 from holding Amundi Index Solutions or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. SPDR SP Dividend
Performance |
| Timeline |
| Amundi Index Solutions |
| SPDR SP Dividend |
Amundi Index and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and SPDR SP
The main advantage of trading using opposite Amundi Index and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP'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 |
| SPDR SP vs. SPDR Dow Jones | SPDR SP vs. SPDR Barclays Euro | SPDR SP vs. SPDR SP Consumer | SPDR SP vs. SPDR SP Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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