Correlation Between Amundi MSCI and Marriott International
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By analyzing existing cross correlation between Amundi MSCI Europe and Marriott International, you can compare the effects of market volatilities on Amundi MSCI and Marriott International 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 MSCI with a short position of Marriott International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi MSCI and Marriott International.
Diversification Opportunities for Amundi MSCI and Marriott International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and Marriott is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Amundi MSCI Europe and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International and Amundi MSCI 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 MSCI Europe are associated (or correlated) with Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of Amundi MSCI i.e., Amundi MSCI and Marriott International go up and down completely randomly.
Pair Corralation between Amundi MSCI and Marriott International
Assuming the 90 days trading horizon Amundi MSCI is expected to generate 13.45 times less return on investment than Marriott International. But when comparing it to its historical volatility, Amundi MSCI Europe is 1.98 times less risky than Marriott International. It trades about 0.04 of its potential returns per unit of risk. Marriott International is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 20,516 in Marriott International on September 6, 2024 and sell it today you would earn a total of 6,669 from holding Marriott International or generate 32.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Amundi MSCI Europe vs. Marriott International
Performance |
Timeline |
Amundi MSCI Europe |
Marriott International |
Amundi MSCI and Marriott International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amundi MSCI and Marriott International
The main advantage of trading using opposite Amundi MSCI and Marriott International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi MSCI position performs unexpectedly, Marriott International 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 Marriott International will offset losses from the drop in Marriott International's long position.Amundi MSCI vs. Amundi SP 500 | Amundi MSCI vs. Amundi Index Solutions | Amundi MSCI vs. Amundi Euro Stoxx | Amundi MSCI vs. Amundi Index Solutions |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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