Correlation Between Amundi Index and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi ETF 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 Amundi ETF 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 Amundi ETF MSCI, you can compare the effects of market volatilities on Amundi Index and Amundi ETF 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 Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi ETF.
Diversification Opportunities for Amundi Index and Amundi ETF
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Amundi is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI 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 Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi ETF go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi ETF
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 1.51 times more return on investment than Amundi ETF. However, Amundi Index is 1.51 times more volatile than Amundi ETF MSCI. It trades about -0.06 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about -0.14 per unit of risk. If you would invest 1,448 in Amundi Index Solutions on August 24, 2024 and sell it today you would lose (25.00) from holding Amundi Index Solutions or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi ETF MSCI
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi ETF MSCI |
Amundi Index and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi ETF
The main advantage of trading using opposite Amundi Index and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| Amundi Index vs. Amundi ETF MSCI | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Granite 3x LVMH |
| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Lyxor UCITS Stoxx | Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi ETF PEA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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