Correlation Between Xtrackers MSCI and Amundi CAC
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and Amundi CAC 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 CAC 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 CAC 40, you can compare the effects of market volatilities on Xtrackers MSCI and Amundi CAC 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 CAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Amundi CAC.
Diversification Opportunities for Xtrackers MSCI and Amundi CAC
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 CAC 40 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi CAC 40 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 CAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi CAC 40 has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and Amundi CAC go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Amundi CAC
If you would invest 4,013 in Xtrackers MSCI Europe on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Xtrackers MSCI Europe or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers MSCI Europe vs. Amundi CAC 40
Performance |
| Timeline |
| Xtrackers MSCI Europe |
| Amundi CAC 40 |
Xtrackers MSCI and Amundi CAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Amundi CAC
The main advantage of trading using opposite Xtrackers MSCI and Amundi CAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, Amundi CAC 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 CAC will offset losses from the drop in Amundi CAC's long position.| Xtrackers MSCI vs. Amundi Index Solutions | Xtrackers MSCI vs. Multi Units Luxembourg | Xtrackers MSCI vs. iShares Digital Entertainment | Xtrackers MSCI vs. Amundi Index Solutions |
| Amundi CAC vs. Deutsche Telekom AG | Amundi CAC vs. Mnchener Rck AG | Amundi CAC vs. Deutsche Bank Aktiengesellschaft |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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