Correlation Between Gold Bullion and AMUNDI MSCI
Can any of the company-specific risk be diversified away by investing in both Gold Bullion and AMUNDI MSCI 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 Gold Bullion and AMUNDI MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Bullion Securities and AMUNDI MSCI North, you can compare the effects of market volatilities on Gold Bullion 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 Gold Bullion with a short position of AMUNDI MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bullion and AMUNDI MSCI.
Diversification Opportunities for Gold Bullion and AMUNDI MSCI
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gold and AMUNDI is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gold Bullion Securities and AMUNDI MSCI North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMUNDI MSCI North and Gold Bullion 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 Gold Bullion Securities 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 North has no effect on the direction of Gold Bullion i.e., Gold Bullion and AMUNDI MSCI go up and down completely randomly.
Pair Corralation between Gold Bullion and AMUNDI MSCI
Assuming the 90 days trading horizon Gold Bullion is expected to generate 64.3 times less return on investment than AMUNDI MSCI. In addition to that, Gold Bullion is 1.05 times more volatile than AMUNDI MSCI North. It trades about 0.01 of its total potential returns per unit of risk. AMUNDI MSCI North is currently generating about 0.38 per unit of volatility. If you would invest 14,135 in AMUNDI MSCI North on September 5, 2024 and sell it today you would earn a total of 1,358 from holding AMUNDI MSCI North or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Bullion Securities vs. AMUNDI MSCI North
Performance |
| Timeline |
| Gold Bullion Securities |
| AMUNDI MSCI North |
Gold Bullion and AMUNDI MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bullion and AMUNDI MSCI
The main advantage of trading using opposite Gold Bullion and AMUNDI MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bullion 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.| Gold Bullion vs. Amundi Index Solutions | Gold Bullion vs. Manitou BF SA | Gold Bullion vs. 21Shares Polkadot ETP | Gold Bullion vs. Ekinops SA |
| AMUNDI MSCI vs. Amundi Index Solutions | AMUNDI MSCI vs. Amundi ETF MSCI | AMUNDI MSCI vs. Amundi Index Solutions | AMUNDI MSCI vs. AMUNDI MSCI USA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |