Correlation Between Amundi MSCI and Xtrackers Nikkei
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By analyzing existing cross correlation between Amundi MSCI Europe and Xtrackers Nikkei 225, you can compare the effects of market volatilities on Amundi MSCI and Xtrackers Nikkei 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 Amundi MSCI with a short position of Xtrackers Nikkei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Xtrackers Nikkei.
Diversification Opportunities for Amundi MSCI and Xtrackers Nikkei
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Xtrackers is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI Europe and Xtrackers Nikkei 225 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Nikkei 225 and Amundi MSCI 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 Amundi MSCI Europe are associated (or correlated) with Xtrackers Nikkei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Nikkei 225 has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Xtrackers Nikkei go up and down completely randomly.
Pair Corralation between Amundi MSCI and Xtrackers Nikkei
Assuming the 90 days trading horizon Amundi MSCI is expected to generate 698.0 times less return on investment than Xtrackers Nikkei. But when comparing it to its historical volatility, Amundi MSCI Europe is 1.22 times less risky than Xtrackers Nikkei. It trades about 0.0 of its potential returns per unit of risk. Xtrackers Nikkei 225 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,401 in Xtrackers Nikkei 225 on September 2, 2024 and sell it today you would earn a total of 69.00 from holding Xtrackers Nikkei 225 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi MSCI Europe vs. Xtrackers Nikkei 225
Performance |
| Timeline |
| Amundi MSCI Europe |
| Xtrackers Nikkei 225 |
Amundi MSCI and Xtrackers Nikkei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Xtrackers Nikkei
The main advantage of trading using opposite Amundi MSCI and Xtrackers Nikkei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Xtrackers Nikkei 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 Xtrackers Nikkei will offset losses from the drop in Xtrackers Nikkei's long position.| Amundi MSCI vs. Amundi SP 500 | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Euro Stoxx | Amundi MSCI vs. Amundi Index Solutions |
| Xtrackers Nikkei vs. UBS Fund Solutions | Xtrackers Nikkei vs. iShares Core SP | Xtrackers Nikkei 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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