Correlation Between Amundi ETF and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi ETF and Amundi 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 ETF and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi ETF Leveraged and Amundi MSCI Europe, you can compare the effects of market volatilities on Amundi ETF and Amundi 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 ETF with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and Amundi MSCI.
Diversification Opportunities for Amundi ETF and Amundi MSCI
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Amundi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF Leveraged and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe and Amundi ETF 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 ETF Leveraged are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Europe has no effect on the direction of Amundi ETF i.e., Amundi ETF and Amundi MSCI go up and down completely randomly.
Pair Corralation between Amundi ETF and Amundi MSCI
Assuming the 90 days trading horizon Amundi ETF Leveraged is expected to generate 2.28 times more return on investment than Amundi MSCI. However, Amundi ETF is 2.28 times more volatile than Amundi MSCI Europe. It trades about 0.13 of its potential returns per unit of risk. Amundi MSCI Europe is currently generating about 0.08 per unit of risk. If you would invest 1,304 in Amundi ETF Leveraged on September 1, 2024 and sell it today you would earn a total of 1,234 from holding Amundi ETF Leveraged or generate 94.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Amundi ETF Leveraged vs. Amundi MSCI Europe
Performance |
| Timeline |
| Amundi ETF Leveraged |
| Amundi MSCI Europe |
Amundi ETF and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and Amundi MSCI
The main advantage of trading using opposite Amundi ETF and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF position performs unexpectedly, Amundi 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 Amundi MSCI will offset losses from the drop in Amundi MSCI's long position.| Amundi ETF vs. Multi Units France | Amundi ETF vs. Lyxor MSCI China | Amundi ETF vs. Lyxor Commodities RefinitivCoreCommodity | Amundi ETF vs. Manitou BF SA |
| Amundi MSCI vs. Amundi ETF MSCI | Amundi MSCI vs. Lyxor UCITS Stoxx | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi MSCI Europe |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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