Correlation Between Vanguard and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Vanguard and Amundi Index 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 and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard SP 500 and Amundi Index Solutions, you can compare the effects of market volatilities on Vanguard and Amundi Index 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 with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard and Amundi Index.
Diversification Opportunities for Vanguard and Amundi Index
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vanguard and Amundi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP 500 and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Vanguard 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 SP 500 are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Vanguard i.e., Vanguard and Amundi Index go up and down completely randomly.
Pair Corralation between Vanguard and Amundi Index
Assuming the 90 days trading horizon Vanguard SP 500 is expected to generate 1.11 times more return on investment than Amundi Index. However, Vanguard is 1.11 times more volatile than Amundi Index Solutions. It trades about 0.13 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.0 per unit of risk. If you would invest 7,559 in Vanguard SP 500 on September 2, 2024 and sell it today you would earn a total of 2,549 from holding Vanguard SP 500 or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Vanguard SP 500 vs. Amundi Index Solutions
Performance |
| Timeline |
| Vanguard SP 500 |
| Amundi Index Solutions |
Vanguard and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard and Amundi Index
The main advantage of trading using opposite Vanguard and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Vanguard vs. Vanguard FTSE Emerging | Vanguard vs. Vanguard USD Emerging | Vanguard vs. Vanguard FTSE Developed | Vanguard vs. Vanguard FTSE Japan |
| Amundi Index vs. UBSFund Solutions MSCI | Amundi Index vs. Vanguard SP 500 | Amundi Index vs. iShares VII PLC | Amundi Index vs. iShares Core SP |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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