Correlation Between SPDR FTSE and Amundi Index
Can any of the company-specific risk be diversified away by investing in both SPDR FTSE 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 SPDR FTSE and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR FTSE UK and Amundi Index Solutions, you can compare the effects of market volatilities on SPDR FTSE 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 SPDR FTSE with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR FTSE and Amundi Index.
Diversification Opportunities for SPDR FTSE and Amundi Index
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and Amundi is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SPDR FTSE UK 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 SPDR FTSE 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 FTSE UK 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 SPDR FTSE i.e., SPDR FTSE and Amundi Index go up and down completely randomly.
Pair Corralation between SPDR FTSE and Amundi Index
Assuming the 90 days trading horizon SPDR FTSE is expected to generate 1.1 times less return on investment than Amundi Index. But when comparing it to its historical volatility, SPDR FTSE UK is 1.04 times less risky than Amundi Index. It trades about 0.26 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 11,528 in Amundi Index Solutions on September 19, 2024 and sell it today you would earn a total of 346.00 from holding Amundi Index Solutions or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPDR FTSE UK vs. Amundi Index Solutions
Performance |
| Timeline |
| SPDR FTSE UK |
| Amundi Index Solutions |
SPDR FTSE and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR FTSE and Amundi Index
The main advantage of trading using opposite SPDR FTSE and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR FTSE 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.| SPDR FTSE vs. SPDR MSCI Europe | SPDR FTSE vs. SPDR SP Utilities | SPDR FTSE vs. SPDR MSCI Europe | SPDR FTSE vs. SPDR MSCI EM |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Emerging |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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