Correlation Between Amundi Treasury and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi Treasury and Xtrackers 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 Treasury and Xtrackers MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Treasury Bond and Xtrackers MSCI USA, you can compare the effects of market volatilities on Amundi Treasury and Xtrackers 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 Treasury with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Treasury and Xtrackers MSCI.
Diversification Opportunities for Amundi Treasury and Xtrackers MSCI
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Xtrackers is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Treasury Bond and Xtrackers MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI USA and Amundi Treasury 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 Treasury Bond are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI USA has no effect on the direction of Amundi Treasury i.e., Amundi Treasury and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between Amundi Treasury and Xtrackers MSCI
Assuming the 90 days trading horizon Amundi Treasury Bond is expected to under-perform the Xtrackers MSCI. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Treasury Bond is 1.4 times less risky than Xtrackers MSCI. The etf trades about 0.0 of its potential returns per unit of risk. The Xtrackers MSCI USA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 568,960 in Xtrackers MSCI USA on August 31, 2024 and sell it today you would earn a total of 318,090 from holding Xtrackers MSCI USA or generate 55.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Amundi Treasury Bond vs. Xtrackers MSCI USA
Performance |
| Timeline |
| Amundi Treasury Bond |
| Xtrackers MSCI USA |
Amundi Treasury and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Treasury and Xtrackers MSCI
The main advantage of trading using opposite Amundi Treasury and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Treasury position performs unexpectedly, Xtrackers 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| Amundi Treasury vs. Amundi EUR High | Amundi Treasury vs. Amundi Index Solutions | Amundi Treasury vs. Amundi MSCI Pacific | Amundi Treasury vs. Amundi MSCI Europe |
| Xtrackers MSCI vs. Vanguard FTSE Developed | Xtrackers MSCI vs. Leverage Shares 2x | Xtrackers MSCI vs. Amundi Index Solutions | Xtrackers 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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