Correlation Between Ford and Amundi MSCI
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By analyzing existing cross correlation between Ford Motor and Amundi MSCI Europe, you can compare the effects of market volatilities on Ford and Amundi MSCI 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 Ford with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Amundi MSCI.
Diversification Opportunities for Ford and Amundi MSCI
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Amundi is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe and Ford 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 Ford Motor are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Europe has no effect on the direction of Ford i.e., Ford and Amundi MSCI go up and down completely randomly.
Pair Corralation between Ford and Amundi MSCI
Taking into account the 90-day investment horizon Ford is expected to generate 10.42 times less return on investment than Amundi MSCI. But when comparing it to its historical volatility, Ford Motor is 4.44 times less risky than Amundi MSCI. It trades about 0.03 of its potential returns per unit of risk. Amundi MSCI Europe is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,688 in Amundi MSCI Europe on September 2, 2024 and sell it today you would earn a total of 5,209 from holding Amundi MSCI Europe or generate 193.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Ford Motor vs. Amundi MSCI Europe
Performance |
| Timeline |
| Ford Motor |
| Amundi MSCI Europe |
Ford and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Amundi MSCI
The main advantage of trading using opposite Ford and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.The idea behind Ford Motor and Amundi MSCI Europe pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi MSCI vs. Amundi SP 500 | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Euro Stoxx | Amundi MSCI vs. Amundi Index Solutions |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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