Correlation Between Amundi MSCI and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Amundi 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 Amundi 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 Amundi MSCI World and Amundi Index Solutions, you can compare the effects of market volatilities on Amundi 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 Amundi MSCI with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Amundi Index.
Diversification Opportunities for Amundi MSCI and Amundi Index
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Amundi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World 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 Amundi 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 Amundi MSCI World 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 Amundi MSCI i.e., Amundi MSCI and Amundi Index go up and down completely randomly.
Pair Corralation between Amundi MSCI and Amundi Index
Assuming the 90 days trading horizon Amundi MSCI World is expected to generate 18.23 times more return on investment than Amundi Index. However, Amundi MSCI is 18.23 times more volatile than Amundi Index Solutions. It trades about 0.17 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.32 per unit of risk. If you would invest 85,851 in Amundi MSCI World on September 13, 2024 and sell it today you would earn a total of 3,219 from holding Amundi MSCI World or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amundi MSCI World vs. Amundi Index Solutions
Performance |
| Timeline |
| Amundi MSCI World |
| Amundi Index Solutions |
Amundi MSCI and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Amundi Index
The main advantage of trading using opposite Amundi MSCI and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi 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.| Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Stoxx | Amundi MSCI vs. Amundi CAC 40 |
| Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index vs. Amundi CAC 40 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |