Correlation Between IShares VII and Amundi Euro
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By analyzing existing cross correlation between iShares VII PLC and Amundi Euro Stoxx, you can compare the effects of market volatilities on IShares VII and Amundi Euro 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 VII with a short position of Amundi Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and Amundi Euro.
Diversification Opportunities for IShares VII and Amundi Euro
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Amundi is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and Amundi Euro Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Euro Stoxx and IShares VII 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 VII PLC are associated (or correlated) with Amundi Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Euro Stoxx has no effect on the direction of IShares VII i.e., IShares VII and Amundi Euro go up and down completely randomly.
Pair Corralation between IShares VII and Amundi Euro
Assuming the 90 days trading horizon iShares VII PLC is expected to generate 1.26 times more return on investment than Amundi Euro. However, IShares VII is 1.26 times more volatile than Amundi Euro Stoxx. It trades about 0.05 of its potential returns per unit of risk. Amundi Euro Stoxx is currently generating about 0.0 per unit of risk. If you would invest 20,470 in iShares VII PLC on September 12, 2024 and sell it today you would earn a total of 4,230 from holding iShares VII PLC or generate 20.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares VII PLC vs. Amundi Euro Stoxx
Performance |
| Timeline |
| iShares VII PLC |
| Amundi Euro Stoxx |
IShares VII and Amundi Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and Amundi Euro
The main advantage of trading using opposite IShares VII and Amundi Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII position performs unexpectedly, Amundi Euro 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 Euro will offset losses from the drop in Amundi Euro's long position.| IShares VII vs. iShares Govt Bond | IShares VII vs. iShares Global AAA AA | IShares VII vs. iShares Smart City | IShares VII vs. iShares Broad High |
| Amundi Euro vs. UBS Fund Solutions | Amundi Euro vs. Xtrackers II | Amundi Euro vs. Xtrackers Nikkei 225 | Amundi Euro vs. iShares VII PLC |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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