Correlation Between Amundi Index and Amundi Physical
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi Physical 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 Amundi Physical 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 Amundi Physical Gold, you can compare the effects of market volatilities on Amundi Index and Amundi Physical 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 Amundi Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi Physical.
Diversification Opportunities for Amundi Index and Amundi Physical
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amundi and Amundi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Physical Gold 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 Amundi Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Physical Gold has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi Physical go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi Physical
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.75 times more return on investment than Amundi Physical. However, Amundi Index Solutions is 1.34 times less risky than Amundi Physical. It trades about 0.14 of its potential returns per unit of risk. Amundi Physical Gold is currently generating about 0.09 per unit of risk. If you would invest 7,877 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 3,438 from holding Amundi Index Solutions or generate 43.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi Physical Gold
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi Physical Gold |
Amundi Index and Amundi Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi Physical
The main advantage of trading using opposite Amundi Index and Amundi Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi Physical 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 Physical will offset losses from the drop in Amundi Physical's long position.| Amundi Index vs. Amundi MSCI World | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Physical Gold | Amundi Index vs. LG Russell 2000 |
| Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. Amundi MSCI World | Amundi Physical vs. Amundi Index Solutions | Amundi Physical vs. LG Russell 2000 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |