Correlation Between LS 1x and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both LS 1x and Amundi Nasdaq 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 LS 1x and Amundi Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LS 1x Amazon and Amundi Nasdaq 100 UCITS, you can compare the effects of market volatilities on LS 1x and Amundi Nasdaq 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 LS 1x with a short position of Amundi Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of LS 1x and Amundi Nasdaq.
Diversification Opportunities for LS 1x and Amundi Nasdaq
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 1AMZ and Amundi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding LS 1x Amazon and Amundi Nasdaq 100 UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Nasdaq 100 and LS 1x 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 LS 1x Amazon are associated (or correlated) with Amundi Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Nasdaq 100 has no effect on the direction of LS 1x i.e., LS 1x and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between LS 1x and Amundi Nasdaq
Assuming the 90 days trading horizon LS 1x is expected to generate 1.47 times less return on investment than Amundi Nasdaq. In addition to that, LS 1x is 1.64 times more volatile than Amundi Nasdaq 100 UCITS. It trades about 0.11 of its total potential returns per unit of risk. Amundi Nasdaq 100 UCITS is currently generating about 0.26 per unit of volatility. If you would invest 1,766,500 in Amundi Nasdaq 100 UCITS on September 2, 2024 and sell it today you would earn a total of 109,500 from holding Amundi Nasdaq 100 UCITS or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LS 1x Amazon vs. Amundi Nasdaq 100 UCITS
Performance |
| Timeline |
| LS 1x Amazon |
| Amundi Nasdaq 100 |
LS 1x and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LS 1x and Amundi Nasdaq
The main advantage of trading using opposite LS 1x and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LS 1x position performs unexpectedly, Amundi Nasdaq 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 Nasdaq will offset losses from the drop in Amundi Nasdaq's long position.| LS 1x vs. Scottish Mortgage Investment | LS 1x vs. VinaCapital Vietnam Opportunity | LS 1x vs. Edinburgh Worldwide Investment | LS 1x vs. Baillie Gifford Growth |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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