Correlation Between Molten Ventures and Amundi MSCI

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

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

Diversification Opportunities for Molten Ventures and Amundi MSCI

0.57

Correlation Coefficient

Molten Ventures  Amundi MSCI

Very weak diversification

The 3 months correlation between Molten and Amundi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Molten Ventures VCT and Amundi MSCI UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI UK and Molten Ventures 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 Molten Ventures VCT are associated (or correlated) with Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI UK has no effect on the direction of Molten Ventures i.e., Molten Ventures and Amundi MSCI go up and down completely randomly.

Pair Corralation between Molten Ventures and Amundi MSCI

Assuming the 90 days trading horizon Molten Ventures VCT is expected to under-perform the Amundi MSCI. But the fund apears to be less risky and, when comparing its historical volatility, Molten Ventures VCT is 1.38 times less risky than Amundi MSCI. The fund trades about -0.05 of its potential returns per unit of risk. The Amundi MSCI UK is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  105,174  in Amundi MSCI UK on September 30, 2024 and sell it today you would earn a total of  14,347  from holding Amundi MSCI UK or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Molten Ventures VCT  vs.  Amundi MSCI UK

Molten Ventures VCT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Molten Ventures VCT has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unsteady performance, the Fund's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the fund private investors.

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.

Pair Trading with Molten Ventures and Amundi MSCI

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

The idea behind Molten Ventures VCT and Amundi MSCI UK 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.