Correlation Between IShares Treasury and Amundi Index
Can any of the company-specific risk be diversified away by investing in both IShares Treasury 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 Treasury 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 Treasury Bond and Amundi Index Solutions, you can compare the effects of market volatilities on IShares Treasury 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 Treasury with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Treasury and Amundi Index.
Diversification Opportunities for IShares Treasury and Amundi Index
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Amundi is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding iShares Treasury Bond 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 Treasury 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 Treasury Bond 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 Treasury i.e., IShares Treasury and Amundi Index go up and down completely randomly.
Pair Corralation between IShares Treasury and Amundi Index
Assuming the 90 days trading horizon iShares Treasury Bond is expected to generate 0.79 times more return on investment than Amundi Index. However, iShares Treasury Bond is 1.27 times less risky than Amundi Index. It trades about 0.21 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.04 per unit of risk. If you would invest 438.00 in iShares Treasury Bond on November 7, 2024 and sell it today you would earn a total of 16.00 from holding iShares Treasury Bond or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Treasury Bond vs. Amundi Index Solutions
Performance |
| Timeline |
| iShares Treasury Bond |
| Amundi Index Solutions |
IShares Treasury and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Treasury and Amundi Index
The main advantage of trading using opposite IShares Treasury and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Treasury 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 Treasury vs. iShares MSCI Japan | IShares Treasury vs. iShares JP Morgan | IShares Treasury vs. iShares MSCI Europe | IShares Treasury vs. iShares Nasdaq Biotechnology |
| Amundi Index vs. WisdomTree NASDAQ 100 | Amundi Index vs. WisdomTree SP 500 | Amundi Index vs. Invesco Technology SP | Amundi Index vs. Invesco Technology 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 Positions Ratings module to 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.
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