Correlation Between Xtrackers Nikkei and Amundi SP
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and Amundi SP 500, you can compare the effects of market volatilities on Xtrackers Nikkei and Amundi SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and Amundi SP.
Diversification Opportunities for Xtrackers Nikkei and Amundi SP
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Amundi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and Amundi SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP 500 has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and Amundi SP go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and Amundi SP
Assuming the 90 days trading horizon Xtrackers Nikkei is expected to generate 2.11 times less return on investment than Amundi SP. In addition to that, Xtrackers Nikkei is 1.71 times more volatile than Amundi SP 500. It trades about 0.03 of its total potential returns per unit of risk. Amundi SP 500 is currently generating about 0.12 per unit of volatility. If you would invest 1,114 in Amundi SP 500 on September 3, 2024 and sell it today you would earn a total of 133.00 from holding Amundi SP 500 or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. Amundi SP 500
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| Amundi SP 500 |
Xtrackers Nikkei and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and Amundi SP
The main advantage of trading using opposite Xtrackers Nikkei and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, Amundi SP 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 SP will offset losses from the drop in Amundi SP'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 SP vs. UBS Fund Solutions | Amundi SP vs. Xtrackers II | Amundi SP vs. Xtrackers Nikkei 225 | Amundi SP 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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