Correlation Between SPDR MSCI and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both SPDR MSCI and Amundi ETF 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 ETF 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 ETF PEA, you can compare the effects of market volatilities on SPDR MSCI and Amundi ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR MSCI and Amundi ETF.
Diversification Opportunities for SPDR MSCI and Amundi ETF
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Amundi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SPDR MSCI Europe and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of SPDR MSCI i.e., SPDR MSCI and Amundi ETF go up and down completely randomly.
Pair Corralation between SPDR MSCI and Amundi ETF
Assuming the 90 days trading horizon SPDR MSCI is expected to generate 4.55 times less return on investment than Amundi ETF. But when comparing it to its historical volatility, SPDR MSCI Europe is 1.42 times less risky than Amundi ETF. It trades about 0.03 of its potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,785 in Amundi ETF PEA on August 27, 2024 and sell it today you would earn a total of 1,115 from holding Amundi ETF PEA or generate 23.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR MSCI Europe vs. Amundi ETF PEA
Performance |
| Timeline |
| SPDR MSCI Europe |
| Amundi ETF PEA |
SPDR MSCI and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR MSCI and Amundi ETF
The main advantage of trading using opposite SPDR MSCI and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR MSCI position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| SPDR MSCI vs. Lyxor UCITS Japan | SPDR MSCI vs. Lyxor UCITS Stoxx | SPDR MSCI vs. Xtrackers MSCI Europe | SPDR MSCI vs. SPDR SP 500 |
| Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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