Correlation Between SPDR SP and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both SPDR SP 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 SPDR SP and Amundi MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Amundi MSCI World, you can compare the effects of market volatilities on SPDR SP 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 SPDR SP with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Amundi MSCI.
Diversification Opportunities for SPDR SP and Amundi MSCI
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Amundi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Amundi MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI World and SPDR SP 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 SPDR SP 500 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 World has no effect on the direction of SPDR SP i.e., SPDR SP and Amundi MSCI go up and down completely randomly.
Pair Corralation between SPDR SP and Amundi MSCI
Assuming the 90 days trading horizon SPDR SP 500 is expected to generate 1.03 times more return on investment than Amundi MSCI. However, SPDR SP is 1.03 times more volatile than Amundi MSCI World. It trades about 0.22 of its potential returns per unit of risk. Amundi MSCI World is currently generating about 0.17 per unit of risk. If you would invest 47,252 in SPDR SP 500 on November 3, 2024 and sell it today you would earn a total of 11,518 from holding SPDR SP 500 or generate 24.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Amundi MSCI World
Performance |
| Timeline |
| SPDR SP 500 |
| Amundi MSCI World |
SPDR SP and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Amundi MSCI
The main advantage of trading using opposite SPDR SP and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP 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.| SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR Barclays Cap | SPDR SP vs. SPDR MSCI Europe |
| Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Stoxx | Amundi MSCI vs. Amundi CAC 40 |
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.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |