Correlation Between Amundi MSCI and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Amundi Nasdaq 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 Nasdaq 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 Nasdaq 100 EUR, you can compare the effects of market volatilities on Amundi MSCI and Amundi Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Amundi Nasdaq.
Diversification Opportunities for Amundi MSCI and Amundi Nasdaq
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Amundi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World and Amundi Nasdaq 100 EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Nasdaq 100 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Nasdaq 100 has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between Amundi MSCI and Amundi Nasdaq
Assuming the 90 days trading horizon Amundi MSCI World is expected to generate 1.27 times more return on investment than Amundi Nasdaq. However, Amundi MSCI is 1.27 times more volatile than Amundi Nasdaq 100 EUR. It trades about 0.21 of its potential returns per unit of risk. Amundi Nasdaq 100 EUR is currently generating about 0.09 per unit of risk. If you would invest 84,904 in Amundi MSCI World on September 12, 2024 and sell it today you would earn a total of 4,166 from holding Amundi MSCI World or generate 4.91% 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 Nasdaq 100 EUR
Performance |
| Timeline |
| Amundi MSCI World |
| Amundi Nasdaq 100 |
Amundi MSCI and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Amundi Nasdaq
The main advantage of trading using opposite Amundi MSCI and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Amundi Nasdaq 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 Nasdaq will offset losses from the drop in Amundi Nasdaq'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 Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi MSCI World | Amundi Nasdaq vs. Amundi Index Solutions |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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