Correlation Between Amundi Index and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Amundi Index and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on Amundi Index and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and SSgA SPDR.
Diversification Opportunities for Amundi Index and SSgA SPDR
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and SSgA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Amundi Index i.e., Amundi Index and SSgA SPDR go up and down completely randomly.
Pair Corralation between Amundi Index and SSgA SPDR
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 1.42 times more return on investment than SSgA SPDR. However, Amundi Index is 1.42 times more volatile than SSgA SPDR ETFs. It trades about 0.1 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.06 per unit of risk. If you would invest 16,416 in Amundi Index Solutions on September 1, 2024 and sell it today you would earn a total of 7,414 from holding Amundi Index Solutions or generate 45.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Amundi Index Solutions |
| SSgA SPDR ETFs |
Amundi Index and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and SSgA SPDR
The main advantage of trading using opposite Amundi Index and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| Amundi Index vs. Multi Units France | Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Lyxor Commodities RefinitivCoreCommodity | Amundi Index vs. Manitou BF SA |
| SSgA SPDR vs. Multi Units France | SSgA SPDR vs. Lyxor MSCI China | SSgA SPDR vs. Lyxor Commodities RefinitivCoreCommodity | SSgA SPDR vs. Manitou BF SA |
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.
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