Correlation Between Xtrackers Nikkei and Amundi Index
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and Amundi Index Solutions, you can compare the effects of market volatilities on Xtrackers Nikkei and Amundi Index 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 Xtrackers Nikkei with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and Amundi Index.
Diversification Opportunities for Xtrackers Nikkei and Amundi Index
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Amundi is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and Xtrackers Nikkei 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 Xtrackers Nikkei 225 are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and Amundi Index go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and Amundi Index
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 1.0 times more return on investment than Amundi Index. However, Xtrackers Nikkei 225 is 1.0 times less risky than Amundi Index. It trades about 0.04 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.04 per unit of risk. If you would invest 2,008 in Xtrackers Nikkei 225 on September 3, 2024 and sell it today you would earn a total of 462.00 from holding Xtrackers Nikkei 225 or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. Amundi Index Solutions
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| Amundi Index Solutions |
Xtrackers Nikkei and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and Amundi Index
The main advantage of trading using opposite Xtrackers Nikkei and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Xtrackers Nikkei vs. UBS Fund Solutions | Xtrackers Nikkei vs. Xtrackers II | Xtrackers Nikkei vs. iShares VII PLC | Xtrackers Nikkei vs. SPDR Gold Shares |
| Amundi Index vs. Amundi MSCI Europe | Amundi Index vs. Amundi SP 500 | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Euro Stoxx |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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