Correlation Between IShares Nikkei and Amundi Index
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By analyzing existing cross correlation between iShares Nikkei 225 and Amundi Index Solutions, you can compare the effects of market volatilities on IShares Nikkei 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 Nikkei with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Nikkei and Amundi Index.
Diversification Opportunities for IShares Nikkei and Amundi Index
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Amundi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding iShares Nikkei 225 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 Nikkei 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 Nikkei 225 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 Nikkei i.e., IShares Nikkei and Amundi Index go up and down completely randomly.
Pair Corralation between IShares Nikkei and Amundi Index
Assuming the 90 days trading horizon iShares Nikkei 225 is expected to generate 0.99 times more return on investment than Amundi Index. However, iShares Nikkei 225 is 1.01 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 0.04 per unit of risk. If you would invest 1,943 in iShares Nikkei 225 on September 3, 2024 and sell it today you would earn a total of 424.00 from holding iShares Nikkei 225 or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Nikkei 225 vs. Amundi Index Solutions
Performance |
| Timeline |
| iShares Nikkei 225 |
| Amundi Index Solutions |
IShares Nikkei and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Nikkei and Amundi Index
The main advantage of trading using opposite IShares Nikkei and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Nikkei 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 Nikkei vs. iShares Govt Bond | IShares Nikkei vs. iShares Global AAA AA | IShares Nikkei vs. iShares Smart City | IShares Nikkei vs. iShares Broad High |
| Amundi Index vs. Amundi MSCI Europe | Amundi Index vs. Amundi SP 500 | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Euro 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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