Correlation Between SPDR MSCI and Amundi Index
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI 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 SPDR MSCI and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR MSCI Europe and Amundi Index Solutions, you can compare the effects of market volatilities on SPDR MSCI 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 SPDR MSCI with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and Amundi Index.
Diversification Opportunities for SPDR MSCI and Amundi Index
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPDR and Amundi is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI Europe 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 SPDR MSCI 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 MSCI Europe 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 SPDR MSCI i.e., SPDR MSCI and Amundi Index go up and down completely randomly.
Pair Corralation between SPDR MSCI and Amundi Index
Assuming the 90 days trading horizon SPDR MSCI Europe is expected to under-perform the Amundi Index. In addition to that, SPDR MSCI is 1.34 times more volatile than Amundi Index Solutions. It trades about -0.09 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.16 per unit of volatility. If you would invest 51,902 in Amundi Index Solutions on November 2, 2024 and sell it today you would earn a total of 6,720 from holding Amundi Index Solutions or generate 12.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.06% |
| Values | Daily Returns |
SPDR MSCI Europe vs. Amundi Index Solutions
Performance |
| Timeline |
| SPDR MSCI Europe |
| Amundi Index Solutions |
SPDR MSCI and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR MSCI and Amundi Index
The main advantage of trading using opposite SPDR MSCI and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI 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.| SPDR MSCI vs. Lyxor UCITS NASDAQ 100 | SPDR MSCI vs. Lyxor UCITS Stoxx | SPDR MSCI vs. Lyxor UCITS MSCI | SPDR MSCI vs. Multi Units Luxembourg |
| Amundi Index vs. Amundi ETF PEA | Amundi Index vs. Amundi ETF PEA | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi ETF PEA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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