Correlation Between Amundi CAC and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi CAC and IShares 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 CAC and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi CAC 40 and iShares MSCI USA, you can compare the effects of market volatilities on Amundi CAC and IShares 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 CAC with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi CAC and IShares MSCI.
Diversification Opportunities for Amundi CAC and IShares MSCI
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and IShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amundi CAC 40 and iShares MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI USA and Amundi CAC 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 CAC 40 are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI USA has no effect on the direction of Amundi CAC i.e., Amundi CAC and IShares MSCI go up and down completely randomly.
Pair Corralation between Amundi CAC and IShares MSCI
Assuming the 90 days trading horizon Amundi CAC 40 is expected to generate 0.98 times more return on investment than IShares MSCI. However, Amundi CAC 40 is 1.02 times less risky than IShares MSCI. It trades about 0.08 of its potential returns per unit of risk. iShares MSCI USA is currently generating about 0.07 per unit of risk. If you would invest 7,088 in Amundi CAC 40 on September 22, 2024 and sell it today you would earn a total of 76.00 from holding Amundi CAC 40 or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi CAC 40 vs. iShares MSCI USA
Performance |
| Timeline |
| Amundi CAC 40 |
| iShares MSCI USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Amundi CAC and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi CAC and IShares MSCI
The main advantage of trading using opposite Amundi CAC and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi CAC position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Amundi CAC vs. Deutsche Telekom AG | Amundi CAC vs. Volkswagen AG | Amundi CAC vs. Bayerische Motoren Werke | Amundi CAC vs. Mnchener Rck AG |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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