Correlation Between Amundi MSCI and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Amundi MSCI 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 MSCI 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 MSCI World, you can compare the effects of market volatilities on Amundi MSCI and Amundi MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Amundi MSCI.
Diversification Opportunities for Amundi MSCI and Amundi MSCI
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Amundi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World and Amundi MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI World 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI World has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Amundi MSCI go up and down completely randomly.
Pair Corralation between Amundi MSCI and Amundi MSCI
Assuming the 90 days trading horizon Amundi MSCI World is expected to generate 2.46 times more return on investment than Amundi MSCI. However, Amundi MSCI is 2.46 times more volatile than Amundi MSCI World. It trades about 0.3 of its potential returns per unit of risk. Amundi MSCI World is currently generating about 0.3 per unit of risk. If you would invest 84,277 in Amundi MSCI World on September 19, 2024 and sell it today you would earn a total of 5,052 from holding Amundi MSCI World or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi MSCI World vs. Amundi MSCI World
Performance |
| Timeline |
| Amundi MSCI World |
| Amundi MSCI World |
Amundi MSCI and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Amundi MSCI
The main advantage of trading using opposite Amundi MSCI and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.| Amundi MSCI vs. Lyxor UCITS MSCI | Amundi MSCI vs. Multi Units Luxembourg | Amundi MSCI vs. Multi Units France | Amundi MSCI vs. Amundi Index Solutions |
| Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi MSCI World | Amundi MSCI 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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