Correlation Between Amundi Index and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi Index and SPDR MSCI 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 MSCI 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 MSCI ACWI, you can compare the effects of market volatilities on Amundi Index and SPDR MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and SPDR MSCI.
Diversification Opportunities for Amundi Index and SPDR MSCI
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and SPDR is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and SPDR MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI ACWI 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI ACWI has no effect on the direction of Amundi Index i.e., Amundi Index and SPDR MSCI go up and down completely randomly.
Pair Corralation between Amundi Index and SPDR MSCI
Assuming the 90 days trading horizon Amundi Index is expected to generate 5.94 times less return on investment than SPDR MSCI. But when comparing it to its historical volatility, Amundi Index Solutions is 5.94 times less risky than SPDR MSCI. It trades about 0.16 of its potential returns per unit of risk. SPDR MSCI ACWI is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 21,086 in SPDR MSCI ACWI on November 2, 2024 and sell it today you would earn a total of 2,572 from holding SPDR MSCI ACWI or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. SPDR MSCI ACWI
Performance |
| Timeline |
| Amundi Index Solutions |
| SPDR MSCI ACWI |
Amundi Index and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and SPDR MSCI
The main advantage of trading using opposite Amundi Index and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, SPDR MSCI 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 MSCI will offset losses from the drop in SPDR MSCI's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI World | Amundi Index vs. Amundi Index Solutions |
| SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR Barclays Cap | SPDR MSCI vs. SPDR SP 500 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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