Correlation Between IShares Core and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Amundi ETF MSCI, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Amundi ETF.
Diversification Opportunities for IShares Core and Amundi ETF
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Amundi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and IShares Core 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 iShares Core SP 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 MSCI has no effect on the direction of IShares Core i.e., IShares Core and Amundi ETF go up and down completely randomly.
Pair Corralation between IShares Core and Amundi ETF
Assuming the 90 days trading horizon iShares Core SP is expected to generate 1.86 times more return on investment than Amundi ETF. However, IShares Core is 1.86 times more volatile than Amundi ETF MSCI. It trades about 0.18 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about -0.22 per unit of risk. If you would invest 57,160 in iShares Core SP on August 30, 2024 and sell it today you would earn a total of 2,920 from holding iShares Core SP or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
iShares Core SP vs. Amundi ETF MSCI
Performance |
| Timeline |
| iShares Core SP |
| Amundi ETF MSCI |
IShares Core and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Amundi ETF
The main advantage of trading using opposite IShares Core and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. UBS Fund Solutions | IShares Core vs. Xtrackers Nikkei 225 | IShares Core vs. iShares VII PLC | IShares Core vs. Vanguard Funds Public |
| Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi SP 500 | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Euro Stoxx |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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