Correlation Between Amundi ETF and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Amundi ETF and SPDR SP 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 SPDR SP 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 SPDR SP 500, you can compare the effects of market volatilities on Amundi ETF and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and SPDR SP.
Diversification Opportunities for Amundi ETF and SPDR SP
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amundi and SPDR is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF PEA and SPDR SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP 500 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP 500 has no effect on the direction of Amundi ETF i.e., Amundi ETF and SPDR SP go up and down completely randomly.
Pair Corralation between Amundi ETF and SPDR SP
Assuming the 90 days trading horizon Amundi ETF PEA is expected to generate 0.99 times more return on investment than SPDR SP. However, Amundi ETF PEA is 1.01 times less risky than SPDR SP. It trades about 0.4 of its potential returns per unit of risk. SPDR SP 500 is currently generating about 0.38 per unit of risk. If you would invest 4,310 in Amundi ETF PEA on September 3, 2024 and sell it today you would earn a total of 389.00 from holding Amundi ETF PEA or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi ETF PEA vs. SPDR SP 500
Performance |
| Timeline |
| Amundi ETF PEA |
| SPDR SP 500 |
Amundi ETF and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and SPDR SP
The main advantage of trading using opposite Amundi ETF and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF position performs unexpectedly, SPDR SP 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 SP will offset losses from the drop in SPDR SP's long position.| Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA |
| SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR Barclays Cap | SPDR SP vs. SPDR MSCI Europe |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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