Correlation Between Vanguard and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both Vanguard and Amundi FTSE 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 FTSE 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 FTSE EPRANAREIT, you can compare the effects of market volatilities on Vanguard and Amundi FTSE 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 FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard and Amundi FTSE.
Diversification Opportunities for Vanguard and Amundi FTSE
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and Amundi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP 500 and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of Vanguard i.e., Vanguard and Amundi FTSE go up and down completely randomly.
Pair Corralation between Vanguard and Amundi FTSE
Assuming the 90 days trading horizon Vanguard SP 500 is expected to generate 0.61 times more return on investment than Amundi FTSE. However, Vanguard SP 500 is 1.63 times less risky than Amundi FTSE. It trades about 0.13 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about -0.17 per unit of risk. If you would invest 10,030 in Vanguard SP 500 on September 13, 2024 and sell it today you would earn a total of 176.00 from holding Vanguard SP 500 or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard SP 500 vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| Vanguard SP 500 |
| Amundi FTSE EPRANAREIT |
Vanguard and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard and Amundi FTSE
The main advantage of trading using opposite Vanguard and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard position performs unexpectedly, Amundi FTSE 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 FTSE will offset losses from the drop in Amundi FTSE's long position.| Vanguard vs. Baloise Holding AG | Vanguard vs. 21Shares Polkadot ETP | Vanguard vs. UBS ETF MSCI | Vanguard vs. BB Biotech AG |
| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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