Correlation Between IShares Core and Amundi EUR
Can any of the company-specific risk be diversified away by investing in both IShares Core and Amundi EUR 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 EUR 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 EUR High, you can compare the effects of market volatilities on IShares Core and Amundi EUR 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 EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amundi EUR.
Diversification Opportunities for IShares Core and Amundi EUR
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Amundi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Amundi EUR High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi EUR High 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 EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi EUR High has no effect on the direction of IShares Core i.e., IShares Core and Amundi EUR go up and down completely randomly.
Pair Corralation between IShares Core and Amundi EUR
Assuming the 90 days trading horizon iShares Core SP is expected to under-perform the Amundi EUR. In addition to that, IShares Core is 6.29 times more volatile than Amundi EUR High. It trades about -0.23 of its total potential returns per unit of risk. Amundi EUR High is currently generating about -0.43 per unit of volatility. If you would invest 10,548 in Amundi EUR High on October 14, 2024 and sell it today you would lose (66.00) from holding Amundi EUR High or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.25% |
| Values | Daily Returns |
iShares Core SP vs. Amundi EUR High
Performance |
| Timeline |
| iShares Core SP |
| Amundi EUR High |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Core and Amundi EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amundi EUR
The main advantage of trading using opposite IShares Core and Amundi EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Amundi EUR 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 EUR will offset losses from the drop in Amundi EUR's long position.| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
| Amundi EUR vs. UBSFund Solutions MSCI | Amundi EUR vs. Vanguard SP 500 | Amundi EUR vs. iShares Core SP | Amundi EUR vs. iShares Core MSCI |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |