Correlation Between Amundi SP and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Amundi SP and SPDR Barclays 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 SP and SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SP Global and SPDR Barclays Cap, you can compare the effects of market volatilities on Amundi SP and SPDR Barclays 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 SP with a short position of SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SP and SPDR Barclays.
Diversification Opportunities for Amundi SP and SPDR Barclays
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and SPDR is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SP Global and SPDR Barclays Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays Cap and Amundi SP 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 SP Global are associated (or correlated) with SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays Cap has no effect on the direction of Amundi SP i.e., Amundi SP and SPDR Barclays go up and down completely randomly.
Pair Corralation between Amundi SP and SPDR Barclays
Assuming the 90 days trading horizon Amundi SP is expected to generate 2.18 times less return on investment than SPDR Barclays. But when comparing it to its historical volatility, Amundi SP Global is 1.7 times less risky than SPDR Barclays. It trades about 0.01 of its potential returns per unit of risk. SPDR Barclays Cap is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,879 in SPDR Barclays Cap on August 27, 2024 and sell it today you would earn a total of 400.00 from holding SPDR Barclays Cap or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.14% |
| Values | Daily Returns |
Amundi SP Global vs. SPDR Barclays Cap
Performance |
| Timeline |
| Amundi SP Global |
| SPDR Barclays Cap |
Amundi SP and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SP and SPDR Barclays
The main advantage of trading using opposite Amundi SP and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SP position performs unexpectedly, SPDR Barclays 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 Barclays will offset losses from the drop in SPDR Barclays' long position.| Amundi SP vs. Lyxor UCITS Japan | Amundi SP vs. Lyxor UCITS Stoxx | Amundi SP vs. Xtrackers MSCI Europe | Amundi SP vs. SPDR SP 500 |
| SPDR Barclays vs. Lyxor UCITS Japan | SPDR Barclays vs. Lyxor UCITS Stoxx | SPDR Barclays vs. Xtrackers MSCI Europe | SPDR Barclays vs. SPDR SP 500 |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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