Correlation Between Amundi Index and WisdomTree Broad
Can any of the company-specific risk be diversified away by investing in both Amundi Index and WisdomTree Broad 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 WisdomTree Broad 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 WisdomTree Broad Commodities, you can compare the effects of market volatilities on Amundi Index and WisdomTree Broad 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 WisdomTree Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and WisdomTree Broad.
Diversification Opportunities for Amundi Index and WisdomTree Broad
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and WisdomTree is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and WisdomTree Broad Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Broad Com 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 WisdomTree Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Broad Com has no effect on the direction of Amundi Index i.e., Amundi Index and WisdomTree Broad go up and down completely randomly.
Pair Corralation between Amundi Index and WisdomTree Broad
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.63 times more return on investment than WisdomTree Broad. However, Amundi Index Solutions is 1.59 times less risky than WisdomTree Broad. It trades about 0.03 of its potential returns per unit of risk. WisdomTree Broad Commodities is currently generating about 0.01 per unit of risk. If you would invest 3,566 in Amundi Index Solutions on November 1, 2024 and sell it today you would earn a total of 446.00 from holding Amundi Index Solutions or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amundi Index Solutions vs. WisdomTree Broad Commodities
Performance |
| Timeline |
| Amundi Index Solutions |
| WisdomTree Broad Com |
Amundi Index and WisdomTree Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and WisdomTree Broad
The main advantage of trading using opposite Amundi Index and WisdomTree Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, WisdomTree Broad 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 WisdomTree Broad will offset losses from the drop in WisdomTree Broad'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 |
| WisdomTree Broad vs. Vanguard FTSE Developed | WisdomTree Broad vs. Leverage Shares 2x | WisdomTree Broad vs. Amundi Index Solutions | WisdomTree Broad 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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