Correlation Between WisdomTree Short and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both WisdomTree Short 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 WisdomTree Short and Amundi MSCI 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 MSCI Pacific, you can compare the effects of market volatilities on WisdomTree Short 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 WisdomTree Short with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Short and Amundi MSCI.
Diversification Opportunities for WisdomTree Short and Amundi MSCI
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and Amundi is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Short GBP and Amundi MSCI Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Pacific 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 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 Pacific has no effect on the direction of WisdomTree Short i.e., WisdomTree Short and Amundi MSCI go up and down completely randomly.
Pair Corralation between WisdomTree Short and Amundi MSCI
Assuming the 90 days trading horizon WisdomTree Short GBP is expected to generate 0.52 times more return on investment than Amundi MSCI. However, WisdomTree Short GBP is 1.91 times less risky than Amundi MSCI. It trades about 0.3 of its potential returns per unit of risk. Amundi MSCI Pacific is currently generating about -0.15 per unit of risk. If you would invest 5,793 in WisdomTree Short GBP on August 30, 2024 and sell it today you would earn a total of 369.00 from holding WisdomTree Short GBP or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Short GBP vs. Amundi MSCI Pacific
Performance |
| Timeline |
| WisdomTree Short GBP |
| Amundi MSCI Pacific |
WisdomTree Short and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Short and Amundi MSCI
The main advantage of trading using opposite WisdomTree Short and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Short 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.| WisdomTree Short vs. WisdomTree Zinc | WisdomTree Short vs. WisdomTree Brent Crude | WisdomTree Short vs. WisdomTree Aluminium 2x | WisdomTree Short vs. WisdomTree Enhanced Commodity |
| Amundi MSCI vs. Leverage Shares 3x | Amundi MSCI vs. WisdomTree Natural Gas | Amundi MSCI vs. WisdomTree Short GBP | Amundi MSCI vs. Invesco Health Care |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |