Correlation Between Amundi ETF and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi ETF and Amundi MSCI 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 ETF and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi ETF PEA and Amundi MSCI EMU, you can compare the effects of market volatilities on Amundi ETF and Amundi MSCI 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 ETF with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and Amundi MSCI.
Diversification Opportunities for Amundi ETF and Amundi MSCI
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Amundi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF PEA and Amundi MSCI EMU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI EMU and Amundi ETF 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 ETF PEA are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI EMU has no effect on the direction of Amundi ETF i.e., Amundi ETF and Amundi MSCI go up and down completely randomly.
Pair Corralation between Amundi ETF and Amundi MSCI
Assuming the 90 days trading horizon Amundi ETF PEA is expected to generate 1.08 times more return on investment than Amundi MSCI. However, Amundi ETF is 1.08 times more volatile than Amundi MSCI EMU. It trades about 0.07 of its potential returns per unit of risk. Amundi MSCI EMU is currently generating about -0.06 per unit of risk. If you would invest 2,126 in Amundi ETF PEA on August 29, 2024 and sell it today you would earn a total of 191.00 from holding Amundi ETF PEA or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi ETF PEA vs. Amundi MSCI EMU
Performance |
| Timeline |
| Amundi ETF PEA |
| Amundi MSCI EMU |
Amundi ETF and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and Amundi MSCI
The main advantage of trading using opposite Amundi ETF and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.| Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Manitou BF SA | Amundi ETF vs. Ossiam Minimum Variance | Amundi ETF vs. Ekinops SA |
| Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Manitou BF SA | Amundi MSCI vs. Ossiam Minimum Variance | Amundi MSCI vs. Ekinops SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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