Correlation Between Amundi MSCI and AMUNDI MSCI
Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and AMUNDI MSCI 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 MSCI 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 MSCI USA, you can compare the effects of market volatilities on Amundi MSCI and AMUNDI MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and AMUNDI MSCI.
Diversification Opportunities for Amundi MSCI and AMUNDI MSCI
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amundi and AMUNDI is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI World and AMUNDI MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMUNDI MSCI USA 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMUNDI MSCI USA has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and AMUNDI MSCI go up and down completely randomly.
Pair Corralation between Amundi MSCI and AMUNDI MSCI
Assuming the 90 days trading horizon Amundi MSCI is expected to generate 1.0 times less return on investment than AMUNDI MSCI. But when comparing it to its historical volatility, Amundi MSCI World is 1.48 times less risky than AMUNDI MSCI. It trades about 0.1 of its potential returns per unit of risk. AMUNDI MSCI USA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,165 in AMUNDI MSCI USA on September 16, 2024 and sell it today you would earn a total of 3,337 from holding AMUNDI MSCI USA or generate 40.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi MSCI World vs. AMUNDI MSCI USA
Performance |
| Timeline |
| Amundi MSCI World |
| AMUNDI MSCI USA |
Amundi MSCI and AMUNDI MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi MSCI and AMUNDI MSCI
The main advantage of trading using opposite Amundi MSCI and AMUNDI MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, AMUNDI MSCI 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 MSCI will offset losses from the drop in AMUNDI MSCI's long position.| Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Japan | Amundi MSCI vs. Lyxor UCITS Stoxx | Amundi MSCI vs. Amundi CAC 40 |
| AMUNDI MSCI vs. Lyxor UCITS Japan | AMUNDI MSCI vs. Lyxor UCITS Japan | AMUNDI MSCI vs. Lyxor UCITS Stoxx | AMUNDI MSCI vs. Amundi CAC 40 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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