Correlation Between IShares Core and Amundi Index
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 Core 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 Core SP and Amundi Index Solutions, you can compare the effects of market volatilities on IShares Core 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 Core with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amundi Index.
Diversification Opportunities for IShares Core and Amundi Index
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Amundi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP 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 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 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 Core i.e., IShares Core and Amundi Index go up and down completely randomly.
Pair Corralation between IShares Core and Amundi Index
Assuming the 90 days trading horizon iShares Core SP is expected to generate 0.75 times more return on investment than Amundi Index. However, iShares Core SP is 1.34 times less risky than Amundi Index. It trades about 0.14 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.08 per unit of risk. If you would invest 55,400 in iShares Core SP on September 2, 2024 and sell it today you would earn a total of 8,560 from holding iShares Core SP or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Amundi Index Solutions
Performance |
| Timeline |
| iShares Core SP |
| Amundi Index Solutions |
IShares Core and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amundi Index
The main advantage of trading using opposite IShares Core and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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 Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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