Correlation Between Visa and Amundi MSCI
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By analyzing existing cross correlation between Visa Class A and Amundi MSCI Europe, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Amundi MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Amundi MSCI.
Diversification Opportunities for Visa and Amundi MSCI
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Amundi is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe and Visa 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 Visa Class A 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 Europe has no effect on the direction of Visa i.e., Visa and Amundi MSCI go up and down completely randomly.
Pair Corralation between Visa and Amundi MSCI
Taking into account the 90-day investment horizon Visa is expected to generate 7.51 times less return on investment than Amundi MSCI. But when comparing it to its historical volatility, Visa Class A is 9.86 times less risky than Amundi MSCI. It trades about 0.09 of its potential returns per unit of risk. Amundi MSCI Europe is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,688 in Amundi MSCI Europe on September 2, 2024 and sell it today you would earn a total of 5,209 from holding Amundi MSCI Europe or generate 193.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Visa Class A vs. Amundi MSCI Europe
Performance |
| Timeline |
| Visa Class A |
| Amundi MSCI Europe |
Visa and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Amundi MSCI
The main advantage of trading using opposite Visa and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Amundi MSCI vs. Amundi SP 500 | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Euro Stoxx | 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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