Correlation Between Amundi MSCI and Amundi Physical
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Amundi Physical 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 Amundi Physical 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 Amundi Physical Gold, you can compare the effects of market volatilities on Amundi MSCI and Amundi Physical 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 Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Amundi Physical.
Diversification Opportunities for Amundi MSCI and Amundi Physical
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Amundi is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold 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 Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Amundi Physical go up and down completely randomly.
Pair Corralation between Amundi MSCI and Amundi Physical
Assuming the 90 days trading horizon Amundi MSCI is expected to generate 1.28 times less return on investment than Amundi Physical. But when comparing it to its historical volatility, Amundi MSCI World is 1.02 times less risky than Amundi Physical. It trades about 0.07 of its potential returns per unit of risk. Amundi Physical Gold is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,832 in Amundi Physical Gold on September 12, 2024 and sell it today you would earn a total of 2,845 from holding Amundi Physical Gold or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.67% |
| Values | Daily Returns |
Amundi MSCI World vs. Amundi Physical Gold
Performance |
| Timeline |
| Amundi MSCI World |
| Amundi Physical Gold |
Amundi MSCI and Amundi Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and Amundi Physical
The main advantage of trading using opposite Amundi MSCI and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Amundi Physical 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 Physical will offset losses from the drop in Amundi Physical's long position.| Amundi MSCI vs. Vanguard SP 500 | Amundi MSCI vs. SPDR Dow Jones | Amundi MSCI vs. iShares Core MSCI | Amundi MSCI vs. iShares SP 500 |
| Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. Amundi MSCI World | Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. LG Russell 2000 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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