Correlation Between IShares Core and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both IShares Core and Amundi FTSE 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 Core and Amundi FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on IShares Core and Amundi FTSE 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 Core with a short position of Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amundi FTSE.
Diversification Opportunities for IShares Core and Amundi FTSE
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Amundi is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT and IShares Core 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 Core SP are associated (or correlated) with Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of IShares Core i.e., IShares Core and Amundi FTSE go up and down completely randomly.
Pair Corralation between IShares Core and Amundi FTSE
Assuming the 90 days trading horizon iShares Core SP is expected to generate 0.49 times more return on investment than Amundi FTSE. However, iShares Core SP is 2.05 times less risky than Amundi FTSE. It trades about 0.15 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about -0.17 per unit of risk. If you would invest 63,450 in iShares Core SP on September 13, 2024 and sell it today you would earn a total of 1,040 from holding iShares Core SP or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| iShares Core SP |
| Amundi FTSE EPRANAREIT |
IShares Core and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amundi FTSE
The main advantage of trading using opposite IShares Core and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Amundi FTSE 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 FTSE will offset losses from the drop in Amundi FTSE's long position.| IShares Core vs. Baloise Holding AG | IShares Core vs. 21Shares Polkadot ETP | IShares Core vs. UBS ETF MSCI | IShares Core vs. BB Biotech AG |
| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |