Correlation Between Amundi MSCI and Triple Point

Can any of the company-specific risk be diversified away by investing in both Amundi MSCI and Triple Point 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 Amundi MSCI and Triple Point into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amundi MSCI UK and Triple Point Venture, you can compare the effects of market volatilities on Amundi MSCI and Triple Point 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 Amundi MSCI with a short position of Triple Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Triple Point.

Diversification Opportunities for Amundi MSCI and Triple Point

-0.6

Correlation Coefficient

Amundi MSCI  Triple Point

Excellent diversification

The 3 months correlation between Amundi and Triple is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI UK and Triple Point Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Point Venture and Amundi 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 Amundi MSCI UK are associated (or correlated) with Triple Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Point Venture has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Triple Point go up and down completely randomly.

Pair Corralation between Amundi MSCI and Triple Point

Assuming the 90 days trading horizon Amundi MSCI UK is expected to under-perform the Triple Point. In addition to that, Amundi MSCI is 5.07 times more volatile than Triple Point Venture. It trades about -0.08 of its total potential returns per unit of risk. Triple Point Venture is currently generating about 0.13 per unit of volatility. If you would invest  9,002  in Triple Point Venture on September 30, 2024 and sell it today you would earn a total of  98.00  from holding Triple Point Venture or generate 1.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Amundi MSCI UK  vs.  Triple Point Venture

Amundi MSCI UK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi MSCI UK has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable basic indicators, Amundi MSCI is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Triple Point Venture

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Triple Point Venture are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound technical and fundamental indicators, Triple Point is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Amundi MSCI and Triple Point

The main advantage of trading using opposite Amundi MSCI and Triple Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Triple Point 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 Triple Point will offset losses from the drop in Triple Point's long position.

The idea behind Amundi MSCI UK and Triple Point Venture 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.