Correlation Between SPDR Barclays and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays and Amundi ETF 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 SPDR Barclays and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Euro and Amundi ETF Govies, you can compare the effects of market volatilities on SPDR Barclays and Amundi ETF 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 SPDR Barclays with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Amundi ETF.
Diversification Opportunities for SPDR Barclays and Amundi ETF
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and Amundi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro and Amundi ETF Govies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF Govies and SPDR Barclays 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 SPDR Barclays Euro are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF Govies has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Amundi ETF go up and down completely randomly.
Pair Corralation between SPDR Barclays and Amundi ETF
Assuming the 90 days trading horizon SPDR Barclays Euro is expected to generate 4.05 times more return on investment than Amundi ETF. However, SPDR Barclays is 4.05 times more volatile than Amundi ETF Govies. It trades about 0.12 of its potential returns per unit of risk. Amundi ETF Govies is currently generating about 0.19 per unit of risk. If you would invest 5,371 in SPDR Barclays Euro on August 28, 2024 and sell it today you would earn a total of 26.00 from holding SPDR Barclays Euro or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Amundi ETF Govies
Performance |
| Timeline |
| SPDR Barclays Euro |
| Amundi ETF Govies |
SPDR Barclays and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Amundi ETF
The main advantage of trading using opposite SPDR Barclays and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| SPDR Barclays vs. Amundi ETF Govies | SPDR Barclays vs. iShares STOXX Europe | SPDR Barclays vs. iShares Global Infrastructure | SPDR Barclays vs. SPDR MSCI World |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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