Correlation Between Amundi Index and FIRST TRUST
Can any of the company-specific risk be diversified away by investing in both Amundi Index and FIRST TRUST 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 FIRST TRUST 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 FIRST TRUST GLOBAL, you can compare the effects of market volatilities on Amundi Index and FIRST TRUST 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 FIRST TRUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and FIRST TRUST.
Diversification Opportunities for Amundi Index and FIRST TRUST
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and FIRST is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and FIRST TRUST GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST TRUST GLOBAL 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 FIRST TRUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST TRUST GLOBAL has no effect on the direction of Amundi Index i.e., Amundi Index and FIRST TRUST go up and down completely randomly.
Pair Corralation between Amundi Index and FIRST TRUST
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the FIRST TRUST. In addition to that, Amundi Index is 1.09 times more volatile than FIRST TRUST GLOBAL. It trades about -0.14 of its total potential returns per unit of risk. FIRST TRUST GLOBAL is currently generating about -0.05 per unit of volatility. If you would invest 318,550 in FIRST TRUST GLOBAL on October 13, 2024 and sell it today you would lose (1,600) from holding FIRST TRUST GLOBAL or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. FIRST TRUST GLOBAL
Performance |
| Timeline |
| Amundi Index Solutions |
| FIRST TRUST GLOBAL |
Amundi Index and FIRST TRUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and FIRST TRUST
The main advantage of trading using opposite Amundi Index and FIRST TRUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, FIRST TRUST 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 FIRST TRUST will offset losses from the drop in FIRST TRUST's long position.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| FIRST TRUST vs. Leverage Shares 3x | FIRST TRUST vs. WisdomTree Natural Gas | FIRST TRUST vs. GraniteShares 3x Short | FIRST TRUST vs. WisdomTree Natural Gas |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |