Correlation Between Amundi Index and WisdomTree Enhanced
Can any of the company-specific risk be diversified away by investing in both Amundi Index and WisdomTree Enhanced 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 Enhanced 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 Enhanced Commodity, you can compare the effects of market volatilities on Amundi Index and WisdomTree Enhanced 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 Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and WisdomTree Enhanced.
Diversification Opportunities for Amundi Index and WisdomTree Enhanced
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amundi and WisdomTree is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and WisdomTree Enhanced Commodity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Enhanced 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 Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Enhanced has no effect on the direction of Amundi Index i.e., Amundi Index and WisdomTree Enhanced go up and down completely randomly.
Pair Corralation between Amundi Index and WisdomTree Enhanced
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the WisdomTree Enhanced. In addition to that, Amundi Index is 1.62 times more volatile than WisdomTree Enhanced Commodity. It trades about -0.03 of its total potential returns per unit of risk. WisdomTree Enhanced Commodity is currently generating about 0.2 per unit of volatility. If you would invest 103,350 in WisdomTree Enhanced Commodity on September 12, 2024 and sell it today you would earn a total of 2,850 from holding WisdomTree Enhanced Commodity or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. WisdomTree Enhanced Commodity
Performance |
| Timeline |
| Amundi Index Solutions |
| WisdomTree Enhanced |
Amundi Index and WisdomTree Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and WisdomTree Enhanced
The main advantage of trading using opposite Amundi Index and WisdomTree Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, WisdomTree Enhanced 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 Enhanced will offset losses from the drop in WisdomTree Enhanced's long position.| Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. GraniteShares 3x Short | Amundi Index vs. WisdomTree Natural Gas |
| WisdomTree Enhanced vs. Vanguard FTSE Developed | WisdomTree Enhanced vs. Leverage Shares 2x | WisdomTree Enhanced vs. Amundi Index Solutions | WisdomTree Enhanced 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |