Correlation Between Amundi SP and Dow Jones
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By analyzing existing cross correlation between Amundi SP 500 and Dow Jones Industrial, you can compare the effects of market volatilities on Amundi SP and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SP and Dow Jones.
Diversification Opportunities for Amundi SP and Dow Jones
Almost no diversification
The 3 months correlation between Amundi and Dow is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SP 500 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 500 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Amundi SP i.e., Amundi SP and Dow Jones go up and down completely randomly.
Pair Corralation between Amundi SP and Dow Jones
Assuming the 90 days trading horizon Amundi SP 500 is expected to under-perform the Dow Jones. In addition to that, Amundi SP is 1.35 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.01 per unit of volatility. If you would invest 4,429,313 in Dow Jones Industrial on September 12, 2024 and sell it today you would lose (4,530) from holding Dow Jones Industrial or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Amundi SP 500 vs. Dow Jones Industrial
Performance |
| Timeline |
Amundi SP and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Amundi SP 500
Pair trading matchups for Amundi SP
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Amundi SP and Dow Jones
The main advantage of trading using opposite Amundi SP and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SP position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Amundi SP vs. Amundi MSCI Europe | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. Amundi Euro Stoxx | Amundi SP vs. Amundi Index Solutions |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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