Correlation Between LG Russell and Amundi Physical
Can any of the company-specific risk be diversified away by investing in both LG Russell and Amundi Physical 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 LG Russell and Amundi Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Russell 2000 and Amundi Physical Gold, you can compare the effects of market volatilities on LG Russell and Amundi Physical 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 LG Russell with a short position of Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Russell and Amundi Physical.
Diversification Opportunities for LG Russell and Amundi Physical
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RTWO and Amundi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LG Russell 2000 and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold and LG Russell 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 LG Russell 2000 are associated (or correlated) with Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of LG Russell i.e., LG Russell and Amundi Physical go up and down completely randomly.
Pair Corralation between LG Russell and Amundi Physical
Assuming the 90 days trading horizon LG Russell is expected to generate 1.11 times less return on investment than Amundi Physical. In addition to that, LG Russell is 1.16 times more volatile than Amundi Physical Gold. It trades about 0.07 of its total potential returns per unit of risk. Amundi Physical Gold is currently generating about 0.09 per unit of volatility. If you would invest 7,832 in Amundi Physical Gold on September 12, 2024 and sell it today you would earn a total of 2,845 from holding Amundi Physical Gold or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Russell 2000 vs. Amundi Physical Gold
Performance |
| Timeline |
| LG Russell 2000 |
| Amundi Physical Gold |
LG Russell and Amundi Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Russell and Amundi Physical
The main advantage of trading using opposite LG Russell and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Russell position performs unexpectedly, Amundi Physical 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 Physical will offset losses from the drop in Amundi Physical's long position.| LG Russell vs. SPDR Dow Jones | LG Russell vs. iShares Core MSCI | LG Russell vs. iShares SP 500 | LG Russell vs. Vanguard FTSE All World |
| Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. Amundi MSCI World | Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. LG Russell 2000 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |