Correlation Between SPDR Barclays and Amundi Index

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

By analyzing existing cross correlation between SPDR Barclays 10 and Amundi Index Solutions, you can compare the effects of market volatilities on SPDR Barclays and Amundi Index 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 SPDR Barclays with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Amundi Index.

Diversification Opportunities for SPDR Barclays and Amundi Index

0.56

Correlation Coefficient

SPDR Barclays  Amundi Index

Very weak diversification

The 3 months correlation between SPDR and Amundi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays 10 and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and SPDR Barclays 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 SPDR Barclays 10 are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and Amundi Index go up and down completely randomly.

Pair Corralation between SPDR Barclays and Amundi Index

Assuming the 90 days trading horizon SPDR Barclays 10 is expected to under-perform the Amundi Index. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Barclays 10 is 1.36 times less risky than Amundi Index. The etf trades about -0.04 of its potential returns per unit of risk. The Amundi Index Solutions is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  4,764  in Amundi Index Solutions on December 4, 2024 and sell it today you would earn a total of  68.00  from holding Amundi Index Solutions or generate 1.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.21%
Values	Daily Returns

SPDR Barclays 10  vs.  Amundi Index Solutions

SPDR Barclays 10

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPDR Barclays 10 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SPDR Barclays is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Amundi Index Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amundi Index is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SPDR Barclays and Amundi Index

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

The idea behind SPDR Barclays 10 and Amundi Index Solutions 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.