Correlation Between Xtrackers Nikkei and Amundi Euro
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and Amundi Euro Stoxx, you can compare the effects of market volatilities on Xtrackers Nikkei and Amundi Euro 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 Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and Amundi Euro.
Diversification Opportunities for Xtrackers Nikkei and Amundi Euro
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Amundi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and Amundi Euro Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Euro Stoxx 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 Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Euro Stoxx has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and Amundi Euro go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and Amundi Euro
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 0.64 times more return on investment than Amundi Euro. However, Xtrackers Nikkei 225 is 1.55 times less risky than Amundi Euro. It trades about 0.2 of its potential returns per unit of risk. Amundi Euro Stoxx is currently generating about -0.07 per unit of risk. If you would invest 2,458 in Xtrackers Nikkei 225 on September 13, 2024 and sell it today you would earn a total of 89.00 from holding Xtrackers Nikkei 225 or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. Amundi Euro Stoxx
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| Amundi Euro Stoxx |
Xtrackers Nikkei and Amundi Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and Amundi Euro
The main advantage of trading using opposite Xtrackers Nikkei and Amundi Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, Amundi Euro 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 Euro will offset losses from the drop in Amundi Euro'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 Euro vs. UBS Fund Solutions | Amundi Euro vs. Xtrackers II | Amundi Euro vs. Xtrackers Nikkei 225 | Amundi Euro vs. iShares VII PLC |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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