Correlation Between Xtrackers MSCI and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and Amundi ETF 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 ETF 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 ETF MSCI, you can compare the effects of market volatilities on Xtrackers MSCI and Amundi ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Amundi ETF.
Diversification Opportunities for Xtrackers MSCI and Amundi ETF
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 ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and Amundi ETF go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Amundi ETF
If you would invest 4,013 in Xtrackers MSCI Europe on August 30, 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 | 95.65% |
| Values | Daily Returns |
Xtrackers MSCI Europe vs. Amundi ETF MSCI
Performance |
| Timeline |
| Xtrackers MSCI Europe |
| Amundi ETF MSCI |
Xtrackers MSCI and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Amundi ETF
The main advantage of trading using opposite Xtrackers MSCI and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| Xtrackers MSCI vs. Manitou BF SA | Xtrackers MSCI vs. Ossiam Minimum Variance | Xtrackers MSCI vs. Ekinops SA | Xtrackers MSCI vs. Orapi SA |
| Amundi ETF vs. Manitou BF SA | Amundi ETF vs. Ossiam Minimum Variance | Amundi ETF vs. Ekinops SA | Amundi ETF vs. Orapi SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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