Correlation Between IShares Global and Amundi ETF

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

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

Diversification Opportunities for IShares Global and Amundi ETF

0.0

Correlation Coefficient

IShares Global  Amundi ETF

Pay attention - limited upside

The 3 months correlation between IShares and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Clean 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 IShares Global 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 iShares Global Clean 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 IShares Global i.e., IShares Global and Amundi ETF go up and down completely randomly.

Pair Corralation between IShares Global and Amundi ETF

If you would invest (100.00) in iShares Global Clean on October 6, 2024 and sell it today you would earn a total of  100.00  from holding iShares Global Clean or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

iShares Global Clean  vs.  Amundi ETF MSCI

iShares Global Clean

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iShares Global Clean has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, IShares Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amundi ETF MSCI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi ETF MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Amundi ETF is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with IShares Global and Amundi ETF

The main advantage of trading using opposite IShares Global and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global 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.

The idea behind iShares Global Clean and Amundi ETF MSCI 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.