Correlation Between Amundi Index and SPDR Dow
Can any of the company-specific risk be diversified away by investing in both Amundi Index and SPDR Dow 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 Index and SPDR Dow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and SPDR Dow Jones, you can compare the effects of market volatilities on Amundi Index and SPDR Dow 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 Index with a short position of SPDR Dow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and SPDR Dow.
Diversification Opportunities for Amundi Index and SPDR Dow
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and SPDR is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and SPDR Dow Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Dow Jones and Amundi Index 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 Index Solutions are associated (or correlated) with SPDR Dow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Dow Jones has no effect on the direction of Amundi Index i.e., Amundi Index and SPDR Dow go up and down completely randomly.
Pair Corralation between Amundi Index and SPDR Dow
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 3.04 times more return on investment than SPDR Dow. However, Amundi Index is 3.04 times more volatile than SPDR Dow Jones. It trades about 0.05 of its potential returns per unit of risk. SPDR Dow Jones is currently generating about 0.13 per unit of risk. If you would invest 2,422 in Amundi Index Solutions on September 14, 2024 and sell it today you would earn a total of 600.00 from holding Amundi Index Solutions or generate 24.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. SPDR Dow Jones
Performance |
| Timeline |
| Amundi Index Solutions |
| SPDR Dow Jones |
Amundi Index and SPDR Dow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and SPDR Dow
The main advantage of trading using opposite Amundi Index and SPDR Dow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, SPDR Dow 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 SPDR Dow will offset losses from the drop in SPDR Dow's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI World | Amundi Index vs. Amundi Physical Gold | Amundi Index vs. LG Russell 2000 |
| SPDR Dow vs. iShares Core MSCI | SPDR Dow vs. iShares SP 500 | SPDR Dow vs. iShares Core MSCI | SPDR Dow vs. iShares MSCI World |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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