Correlation Between Xtrackers MSCI and Amundi SP
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and Amundi SP 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 Xtrackers MSCI and Amundi SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI Europe and Amundi SP 500, you can compare the effects of market volatilities on Xtrackers MSCI 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 MSCI with a short position of Amundi SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Amundi SP.
Diversification Opportunities for Xtrackers MSCI and Amundi SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI Europe 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 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 Xtrackers MSCI Europe 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 MSCI i.e., Xtrackers MSCI and Amundi SP go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Amundi SP
If you would invest 30,850 in Amundi SP 500 on August 30, 2024 and sell it today you would earn a total of 2,735 from holding Amundi SP 500 or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Xtrackers MSCI Europe vs. Amundi SP 500
Performance |
| Timeline |
| Xtrackers MSCI Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amundi SP 500 |
Xtrackers MSCI and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Amundi SP
The main advantage of trading using opposite Xtrackers MSCI and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI 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.The idea behind Xtrackers MSCI Europe and Amundi SP 500 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi SP vs. BNP Paribas Easy | Amundi SP vs. Amundi Index Solutions | Amundi SP vs. BNP Paribas Easy | Amundi SP vs. BNP Paribas Easy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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