Correlation Between Ossiam Irl and Amundi MSCI

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

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

Diversification Opportunities for Ossiam Irl and Amundi MSCI

-0.23

Correlation Coefficient

Ossiam Irl  Amundi MSCI

Very good diversification

The 3 months correlation between Ossiam and Amundi is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ossiam Irl Icav and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe and Ossiam Irl 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 Ossiam Irl Icav 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 Europe has no effect on the direction of Ossiam Irl i.e., Ossiam Irl and Amundi MSCI go up and down completely randomly.

Pair Corralation between Ossiam Irl and Amundi MSCI

Assuming the 90 days trading horizon Ossiam Irl Icav is expected to under-perform the Amundi MSCI. In addition to that, Ossiam Irl is 1.24 times more volatile than Amundi MSCI Europe. It trades about -0.11 of its total potential returns per unit of risk. Amundi MSCI Europe is currently generating about 0.12 per unit of volatility. If you would invest  7,782  in Amundi MSCI Europe on December 28, 2024 and sell it today you would earn a total of  456.00  from holding Amundi MSCI Europe or generate 5.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Ossiam Irl Icav  vs.  Amundi MSCI Europe

Ossiam Irl Icav

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ossiam Irl Icav has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Etf's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the Exchange Traded Fund stockholders.

Amundi MSCI Europe

Risk-Adjusted Performance

OK

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

Pair Trading with Ossiam Irl and Amundi MSCI

The main advantage of trading using opposite Ossiam Irl and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ossiam Irl 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 Ossiam Irl Icav and Amundi MSCI Europe 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.