Correlation Between Amundi EUR and IShares Core
Can any of the company-specific risk be diversified away by investing in both Amundi EUR and IShares Core 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 EUR and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi EUR High and iShares Core MSCI, you can compare the effects of market volatilities on Amundi EUR and IShares Core 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 EUR with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi EUR and IShares Core.
Diversification Opportunities for Amundi EUR and IShares Core
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and IShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amundi EUR High and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI and Amundi EUR 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 EUR High are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of Amundi EUR i.e., Amundi EUR and IShares Core go up and down completely randomly.
Pair Corralation between Amundi EUR and IShares Core
Assuming the 90 days trading horizon Amundi EUR is expected to generate 1.46 times less return on investment than IShares Core. But when comparing it to its historical volatility, Amundi EUR High is 3.58 times less risky than IShares Core. It trades about 0.12 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,020 in iShares Core MSCI on October 14, 2024 and sell it today you would earn a total of 314.00 from holding iShares Core MSCI or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 60.57% |
| Values | Daily Returns |
Amundi EUR High vs. iShares Core MSCI
Performance |
| Timeline |
| Amundi EUR High |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Core MSCI |
Amundi EUR and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi EUR and IShares Core
The main advantage of trading using opposite Amundi EUR and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi EUR position performs unexpectedly, IShares Core 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 Core will offset losses from the drop in IShares Core's long position.| Amundi EUR vs. UBSFund Solutions MSCI | Amundi EUR vs. Vanguard SP 500 | Amundi EUR vs. iShares Core SP | Amundi EUR vs. iShares Core MSCI |
| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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