Correlation Between Amundi Physical and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Amundi Physical and IShares Physical 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 Amundi Physical and IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Physical Gold and iShares Physical Silver, you can compare the effects of market volatilities on Amundi Physical and IShares Physical 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 Amundi Physical with a short position of IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Physical and IShares Physical.
Diversification Opportunities for Amundi Physical and IShares Physical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and IShares is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Physical Gold and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver and Amundi Physical 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 Amundi Physical Gold are associated (or correlated) with IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Amundi Physical i.e., Amundi Physical and IShares Physical go up and down completely randomly.
Pair Corralation between Amundi Physical and IShares Physical
Assuming the 90 days trading horizon Amundi Physical Gold is expected to generate 0.44 times more return on investment than IShares Physical. However, Amundi Physical Gold is 2.25 times less risky than IShares Physical. It trades about 0.12 of its potential returns per unit of risk. iShares Physical Silver is currently generating about 0.01 per unit of risk. If you would invest 727,400 in Amundi Physical Gold on September 1, 2024 and sell it today you would earn a total of 104,125 from holding Amundi Physical Gold or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Amundi Physical Gold vs. iShares Physical Silver
Performance |
| Timeline |
| Amundi Physical Gold |
| iShares Physical Silver |
Amundi Physical and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Physical and IShares Physical
The main advantage of trading using opposite Amundi Physical and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Physical position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Amundi Physical vs. Blackrock World Mining | Amundi Physical vs. AMG Advanced Metallurgical | Amundi Physical vs. Catalyst Media Group | Amundi Physical vs. MediaZest plc |
| IShares Physical vs. Tungsten West PLC | IShares Physical vs. Hardide PLC | IShares Physical vs. Quantum Blockchain Technologies | IShares Physical vs. Gfinity PLC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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