Correlation Between IShares Physical and Amundi Physical
Can any of the company-specific risk be diversified away by investing in both IShares Physical and Amundi 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 IShares Physical and Amundi Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and Amundi Physical Gold, you can compare the effects of market volatilities on IShares Physical and Amundi 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 IShares Physical with a short position of Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and Amundi Physical.
Diversification Opportunities for IShares Physical and Amundi Physical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and Amundi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold and IShares 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 iShares Physical Silver are associated (or correlated) with Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of IShares Physical i.e., IShares Physical and Amundi Physical go up and down completely randomly.
Pair Corralation between IShares Physical and Amundi Physical
Assuming the 90 days trading horizon IShares Physical is expected to generate 1.28 times less return on investment than Amundi Physical. But when comparing it to its historical volatility, iShares Physical Silver is 1.48 times less risky than Amundi Physical. It trades about 0.06 of its potential returns per unit of risk. Amundi Physical Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 610,263 in Amundi Physical Gold on September 3, 2024 and sell it today you would earn a total of 221,262 from holding Amundi Physical Gold or generate 36.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Physical Silver vs. Amundi Physical Gold
Performance |
| Timeline |
| iShares Physical Silver |
| Amundi Physical Gold |
IShares Physical and Amundi Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and Amundi Physical
The main advantage of trading using opposite IShares Physical and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical position performs unexpectedly, Amundi 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 Amundi Physical will offset losses from the drop in Amundi Physical's long position.| IShares Physical vs. Invesco Physical Gold | IShares Physical vs. Amundi Physical Gold | IShares Physical vs. Bertrandt AG |
| Amundi Physical vs. Sabien Technology Group | Amundi Physical vs. Smithson Investment Trust | Amundi Physical vs. Spotify Technology SA | Amundi Physical vs. K3 Business Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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