Correlation Between Amundi FTSE and IShares Swiss

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

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

Diversification Opportunities for Amundi FTSE and IShares Swiss

0.7

Correlation Coefficient

Amundi FTSE  IShares Swiss

Poor diversification

The 3 months correlation between Amundi and IShares is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amundi FTSE EPRANAREIT and iShares Swiss Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Swiss Dividend and Amundi FTSE 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 FTSE EPRANAREIT are associated (or correlated) with IShares Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Swiss Dividend has no effect on the direction of Amundi FTSE i.e., Amundi FTSE and IShares Swiss go up and down completely randomly.

Pair Corralation between Amundi FTSE and IShares Swiss

Assuming the 90 days trading horizon Amundi FTSE EPRANAREIT is expected to under-perform the IShares Swiss. In addition to that, Amundi FTSE is 1.26 times more volatile than iShares Swiss Dividend. It trades about -0.19 of its total potential returns per unit of risk. iShares Swiss Dividend is currently generating about -0.05 per unit of volatility. If you would invest  16,310  in iShares Swiss Dividend on September 16, 2024 and sell it today you would lose (364.00) from holding iShares Swiss Dividend or give up 2.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.48%
Values	Daily Returns

Amundi FTSE EPRANAREIT  vs.  iShares Swiss Dividend

Amundi FTSE EPRANAREIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi FTSE EPRANAREIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

iShares Swiss Dividend

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Amundi FTSE and IShares Swiss

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

The idea behind Amundi FTSE EPRANAREIT and iShares Swiss Dividend 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.