Correlation Between WisdomTree Short and Amundi Index
Can any of the company-specific risk be diversified away by investing in both WisdomTree Short and Amundi Index 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 WisdomTree Short and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Short GBP and Amundi Index Solutions, you can compare the effects of market volatilities on WisdomTree Short and Amundi Index 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 WisdomTree Short with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Short and Amundi Index.
Diversification Opportunities for WisdomTree Short and Amundi Index
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between WisdomTree and Amundi is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Short GBP and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and WisdomTree Short 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 WisdomTree Short GBP are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of WisdomTree Short i.e., WisdomTree Short and Amundi Index go up and down completely randomly.
Pair Corralation between WisdomTree Short and Amundi Index
Assuming the 90 days trading horizon WisdomTree Short GBP is expected to generate 0.41 times more return on investment than Amundi Index. However, WisdomTree Short GBP is 2.43 times less risky than Amundi Index. It trades about -0.01 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.01 per unit of risk. If you would invest 5,996 in WisdomTree Short GBP on January 25, 2025 and sell it today you would lose (71.00) from holding WisdomTree Short GBP or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Short GBP vs. Amundi Index Solutions
Performance |
| Timeline |
| WisdomTree Short GBP |
| Amundi Index Solutions |
WisdomTree Short and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Short and Amundi Index
The main advantage of trading using opposite WisdomTree Short and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Short position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| WisdomTree Short vs. WisdomTree Zinc | WisdomTree Short vs. WisdomTree Brent Crude | WisdomTree Short vs. WisdomTree Aluminium 2x | WisdomTree Short vs. WisdomTree Enhanced Commodity |
| Amundi Index vs. GraniteShares 3x Long | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. WisdomTree Short GBP | Amundi Index vs. Leverage Shares 3x |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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