Correlation Between SPDR SP and Amundi Govt
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Amundi Govt 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 Govt 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 Govt Bond, you can compare the effects of market volatilities on SPDR SP and Amundi Govt 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 Govt. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Amundi Govt.
Diversification Opportunities for SPDR SP and Amundi Govt
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPDR and Amundi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Amundi Govt Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Govt Bond 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 Govt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Govt Bond has no effect on the direction of SPDR SP i.e., SPDR SP and Amundi Govt go up and down completely randomly.
Pair Corralation between SPDR SP and Amundi Govt
Assuming the 90 days trading horizon SPDR SP 500 is expected to generate 3.31 times more return on investment than Amundi Govt. However, SPDR SP is 3.31 times more volatile than Amundi Govt Bond. It trades about 0.24 of its potential returns per unit of risk. Amundi Govt Bond is currently generating about 0.26 per unit of risk. If you would invest 53,770 in SPDR SP 500 on August 31, 2024 and sell it today you would earn a total of 3,290 from holding SPDR SP 500 or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Amundi Govt Bond
Performance |
| Timeline |
| SPDR SP 500 |
| Amundi Govt Bond |
SPDR SP and Amundi Govt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Amundi Govt
The main advantage of trading using opposite SPDR SP and Amundi Govt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Amundi Govt 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 Govt will offset losses from the drop in Amundi Govt'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 Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi Index Solutions | Amundi Govt vs. Amundi SP 500 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |