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 MSCI 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
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Amundi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core MSCI 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 MSCI 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 is expected to generate 1.57 times less return on investment than Amundi Index. But when comparing it to its historical volatility, iShares Core MSCI is 1.14 times less risky than Amundi Index. It trades about 0.04 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,371,500 in Amundi Index Solutions on August 31, 2024 and sell it today you would earn a total of 572,000 from holding Amundi Index Solutions or generate 24.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
iShares Core MSCI vs. Amundi Index Solutions
Performance |
| Timeline |
| iShares Core MSCI |
| 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. iShares Core SP | Amundi Index vs. iShares Core MSCI | Amundi Index vs. Lyxor UCITS Stoxx |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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