Correlation Between Amundi MSCI and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Dow Jones 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 Amundi MSCI and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi MSCI World and Dow Jones Industrial, you can compare the effects of market volatilities on Amundi MSCI and Dow Jones 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 Amundi MSCI with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Dow Jones.
Diversification Opportunities for Amundi MSCI and Dow Jones
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and Dow is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Amundi MSCI 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 Amundi MSCI World are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Dow Jones go up and down completely randomly.
Pair Corralation between Amundi MSCI and Dow Jones
Assuming the 90 days trading horizon Amundi MSCI World is expected to generate 1.06 times more return on investment than Dow Jones. However, Amundi MSCI is 1.06 times more volatile than Dow Jones Industrial. It trades about 0.1 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 15,189 in Amundi MSCI World on September 19, 2024 and sell it today you would earn a total of 6,141 from holding Amundi MSCI World or generate 40.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.34% |
| Values | Daily Returns |
Amundi MSCI World vs. Dow Jones Industrial
Performance |
| Timeline |
Amundi MSCI and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Amundi MSCI World
Pair trading matchups for Amundi MSCI
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Amundi MSCI and Dow Jones
The main advantage of trading using opposite Amundi MSCI and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi MSCI World | Amundi MSCI vs. Amundi Index Solutions |
| Dow Jones vs. Mangazeya Mining | Dow Jones vs. Summit Materials | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. AMCON Distributing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |