Correlation Between Amundi Index and Global X
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Global X 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 Global X 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 Global X Data, you can compare the effects of market volatilities on Amundi Index and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Global X.
Diversification Opportunities for Amundi Index and Global X
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and Global is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Global X Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Data 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Data has no effect on the direction of Amundi Index i.e., Amundi Index and Global X go up and down completely randomly.
Pair Corralation between Amundi Index and Global X
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.83 times less risky than Global X. The etf trades about -0.17 of its potential returns per unit of risk. The Global X Data is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,560 in Global X Data on August 24, 2024 and sell it today you would lose (34.00) from holding Global X Data or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Global X Data
Performance |
| Timeline |
| Amundi Index Solutions |
| Global X Data |
Amundi Index and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Global X
The main advantage of trading using opposite Amundi Index and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Amundi Index vs. Vanguard FTSE Developed | Amundi Index vs. Leverage Shares 2x | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Albion Venture Capital |
| Global X vs. Leverage Shares 3x | Global X vs. Leverage Shares 3x | Global X vs. Leverage Shares 3x | Global X vs. WisdomTree Short GBP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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