Correlation Between Vanguard FTSE and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Vanguard FTSE 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 FTSE 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 FTSE All World and Amundi ETF MSCI, you can compare the effects of market volatilities on Vanguard FTSE 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 FTSE with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard FTSE and Amundi ETF.
Diversification Opportunities for Vanguard FTSE and Amundi ETF
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and Amundi is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard FTSE All World 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 FTSE 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 FTSE All World 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 FTSE i.e., Vanguard FTSE and Amundi ETF go up and down completely randomly.
Pair Corralation between Vanguard FTSE and Amundi ETF
Assuming the 90 days trading horizon Vanguard FTSE All World is expected to generate 1.45 times more return on investment than Amundi ETF. However, Vanguard FTSE is 1.45 times more volatile than Amundi ETF MSCI. It trades about 0.3 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about -0.11 per unit of risk. If you would invest 12,680 in Vanguard FTSE All World on September 2, 2024 and sell it today you would earn a total of 710.00 from holding Vanguard FTSE All World or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vanguard FTSE All World vs. Amundi ETF MSCI
Performance |
| Timeline |
| Vanguard FTSE All |
| Amundi ETF MSCI |
Vanguard FTSE and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard FTSE and Amundi ETF
The main advantage of trading using opposite Vanguard FTSE and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard FTSE 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 FTSE vs. Vanguard ESG Developed | Vanguard FTSE vs. Vanguard Funds Public | Vanguard FTSE vs. Vanguard Funds PLC | Vanguard FTSE vs. Vanguard Funds Public |
| Amundi ETF vs. UBS Fund Solutions | Amundi ETF vs. iShares VII PLC | Amundi ETF vs. Vanguard Funds Public | Amundi ETF 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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