Correlation Between IShares VII and Amundi Index
Can any of the company-specific risk be diversified away by investing in both IShares VII and Amundi Index 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 IShares VII and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares VII PLC and Amundi Index Solutions, you can compare the effects of market volatilities on IShares VII and Amundi Index 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 IShares VII with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and Amundi Index.
Diversification Opportunities for IShares VII and Amundi Index
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and Amundi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and IShares VII 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 iShares VII PLC are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of IShares VII i.e., IShares VII and Amundi Index go up and down completely randomly.
Pair Corralation between IShares VII and Amundi Index
Assuming the 90 days trading horizon iShares VII PLC is expected to generate 0.9 times more return on investment than Amundi Index. However, iShares VII PLC is 1.11 times less risky than Amundi Index. It trades about 0.06 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.03 per unit of risk. If you would invest 2,730,000 in iShares VII PLC on September 2, 2024 and sell it today you would earn a total of 1,126,500 from holding iShares VII PLC or generate 41.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.92% |
| Values | Daily Returns |
iShares VII PLC vs. Amundi Index Solutions
Performance |
| Timeline |
| iShares VII PLC |
| Amundi Index Solutions |
IShares VII and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and Amundi Index
The main advantage of trading using opposite IShares VII and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| IShares VII vs. iShares Corp Bond | IShares VII vs. iShares Emerging Asia | IShares VII vs. iShares MSCI Global | IShares VII vs. iShares VII PLC |
| Amundi Index vs. UBSFund Solutions MSCI | Amundi Index vs. Vanguard SP 500 | Amundi Index vs. iShares VII PLC | Amundi Index vs. iShares Core SP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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