Correlation Between Amundi Index and Leverage Shares
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Leverage Shares 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 Leverage Shares 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 Leverage Shares 2x, you can compare the effects of market volatilities on Amundi Index and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Leverage Shares.
Diversification Opportunities for Amundi Index and Leverage Shares
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amundi and Leverage is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Leverage Shares 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 2x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 2x has no effect on the direction of Amundi Index i.e., Amundi Index and Leverage Shares go up and down completely randomly.
Pair Corralation between Amundi Index and Leverage Shares
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.38 times more return on investment than Leverage Shares. However, Amundi Index Solutions is 2.66 times less risky than Leverage Shares. It trades about -0.09 of its potential returns per unit of risk. Leverage Shares 2x is currently generating about -0.08 per unit of risk. If you would invest 325,600 in Amundi Index Solutions on August 25, 2024 and sell it today you would lose (5,425) from holding Amundi Index Solutions or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Leverage Shares 2x
Performance |
| Timeline |
| Amundi Index Solutions |
| Leverage Shares 2x |
Amundi Index and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Leverage Shares
The main advantage of trading using opposite Amundi Index and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| Amundi Index vs. Vanguard FTSE Developed | Amundi Index vs. Leverage Shares 2x | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Albion Venture Capital |
| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. WisdomTree SP 500 | Leverage Shares vs. WisdomTree Silver 3x | Leverage Shares vs. Leverage Shares 3x |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |