Correlation Between Vanguard Funds and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard Funds and Amundi ETF 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 Vanguard Funds and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Funds Public and Amundi ETF MSCI, you can compare the effects of market volatilities on Vanguard Funds and Amundi ETF 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 Vanguard Funds with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Funds and Amundi ETF.
Diversification Opportunities for Vanguard Funds and Amundi ETF
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and Amundi is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Funds Public and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and Vanguard Funds 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 Vanguard Funds Public are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of Vanguard Funds i.e., Vanguard Funds and Amundi ETF go up and down completely randomly.
Pair Corralation between Vanguard Funds and Amundi ETF
Assuming the 90 days trading horizon Vanguard Funds Public is expected to generate 1.87 times more return on investment than Amundi ETF. However, Vanguard Funds is 1.87 times more volatile than Amundi ETF MSCI. It trades about 0.18 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about -0.22 per unit of risk. If you would invest 10,233 in Vanguard Funds Public on August 30, 2024 and sell it today you would earn a total of 534.00 from holding Vanguard Funds Public or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vanguard Funds Public vs. Amundi ETF MSCI
Performance |
| Timeline |
| Vanguard Funds Public |
| Amundi ETF MSCI |
Vanguard Funds and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Funds and Amundi ETF
The main advantage of trading using opposite Vanguard Funds and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Funds position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| Vanguard Funds vs. UBS Fund Solutions | Vanguard Funds vs. Xtrackers Nikkei 225 | Vanguard Funds vs. iShares VII PLC | Vanguard Funds vs. iShares Nikkei 225 |
| Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi SP 500 | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Euro Stoxx |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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