Correlation Between GraniteShares and Amundi Nasdaq
Can any of the company-specific risk be diversified away by investing in both GraniteShares 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 GraniteShares and Amundi Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 3x Short and Amundi Nasdaq 100 UCITS, you can compare the effects of market volatilities on GraniteShares 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 GraniteShares with a short position of Amundi Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Amundi Nasdaq.
Diversification Opportunities for GraniteShares and Amundi Nasdaq
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GraniteShares and Amundi is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short 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 GraniteShares 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 GraniteShares 3x Short 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 GraniteShares i.e., GraniteShares and Amundi Nasdaq go up and down completely randomly.
Pair Corralation between GraniteShares and Amundi Nasdaq
Assuming the 90 days trading horizon GraniteShares is expected to generate 6.26 times less return on investment than Amundi Nasdaq. In addition to that, GraniteShares is 7.52 times more volatile than Amundi Nasdaq 100 UCITS. It trades about 0.0 of its total potential returns per unit of risk. Amundi Nasdaq 100 UCITS is currently generating about 0.2 per unit of volatility. If you would invest 1,775,950 in Amundi Nasdaq 100 UCITS on September 12, 2024 and sell it today you would earn a total of 139,250 from holding Amundi Nasdaq 100 UCITS or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Amundi Nasdaq 100 UCITS
Performance |
| Timeline |
| GraniteShares 3x Short |
| Amundi Nasdaq 100 |
GraniteShares and Amundi Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Amundi Nasdaq
The main advantage of trading using opposite GraniteShares and Amundi Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 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.| GraniteShares vs. GraniteShares 3x Short | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 1x Short |
| Amundi Nasdaq vs. Amundi EUR High | Amundi Nasdaq vs. Amundi Index Solutions | Amundi Nasdaq vs. Amundi MSCI Pacific | Amundi Nasdaq vs. Amundi MSCI Europe |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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