Correlation Between Amundi Index and IShares SLI
Can any of the company-specific risk be diversified away by investing in both Amundi Index and IShares SLI 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 Index and IShares SLI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and iShares SLI UCITS, you can compare the effects of market volatilities on Amundi Index and IShares SLI 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 Index with a short position of IShares SLI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and IShares SLI.
Diversification Opportunities for Amundi Index and IShares SLI
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amundi and IShares is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and iShares SLI UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SLI UCITS and Amundi Index 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 Index Solutions are associated (or correlated) with IShares SLI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SLI UCITS has no effect on the direction of Amundi Index i.e., Amundi Index and IShares SLI go up and down completely randomly.
Pair Corralation between Amundi Index and IShares SLI
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the IShares SLI. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.13 times less risky than IShares SLI. The etf trades about -0.09 of its potential returns per unit of risk. The iShares SLI UCITS is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 13,140 in iShares SLI UCITS on February 7, 2024 and sell it today you would lose (190.00) from holding iShares SLI UCITS or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Amundi Index Solutions vs. iShares SLI UCITS
Performance |
| Timeline |
| Amundi Index Solutions |
| iShares SLI UCITS |
Amundi Index and IShares SLI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and IShares SLI
The main advantage of trading using opposite Amundi Index and IShares SLI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, IShares SLI 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 SLI will offset losses from the drop in IShares SLI's long position.| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions |
| IShares SLI vs. iShares Corp Bond | IShares SLI vs. iShares Emerging Asia | IShares SLI vs. iShares Corp Bond | IShares SLI vs. iShares MSCI Global |
Check out your portfolio center.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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