Correlation Between Amundi 3 and Amundi Label
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By analyzing existing cross correlation between Amundi 3 Mois and Amundi Label Actions, you can compare the effects of market volatilities on Amundi 3 and Amundi Label 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 3 with a short position of Amundi Label. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi 3 and Amundi Label.
Diversification Opportunities for Amundi 3 and Amundi Label
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and Amundi is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amundi 3 Mois and Amundi Label Actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Label Actions and Amundi 3 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 3 Mois are associated (or correlated) with Amundi Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Label Actions has no effect on the direction of Amundi 3 i.e., Amundi 3 and Amundi Label go up and down completely randomly.
Pair Corralation between Amundi 3 and Amundi Label
Assuming the 90 days trading horizon Amundi 3 is expected to generate 19.08 times less return on investment than Amundi Label. But when comparing it to its historical volatility, Amundi 3 Mois is 90.99 times less risky than Amundi Label. It trades about 1.59 of its potential returns per unit of risk. Amundi Label Actions is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 29,331 in Amundi Label Actions on September 13, 2024 and sell it today you would earn a total of 1,284 from holding Amundi Label Actions or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi 3 Mois vs. Amundi Label Actions
Performance |
| Timeline |
| Amundi 3 Mois |
| Amundi Label Actions |
Amundi 3 and Amundi Label Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi 3 and Amundi Label
The main advantage of trading using opposite Amundi 3 and Amundi Label positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi 3 position performs unexpectedly, Amundi Label 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 Label will offset losses from the drop in Amundi Label's long position.The idea behind Amundi 3 Mois and Amundi Label Actions 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.| Amundi Label vs. Superior Plus Corp | Amundi Label vs. Intel | Amundi Label vs. Volkswagen AG | Amundi Label vs. Reliance Steel Aluminum |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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