Correlation Between Amundi Index and JPM BetaBuilders
Can any of the company-specific risk be diversified away by investing in both Amundi Index and JPM BetaBuilders 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 JPM BetaBuilders 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 JPM BetaBuilders China, you can compare the effects of market volatilities on Amundi Index and JPM BetaBuilders 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 JPM BetaBuilders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and JPM BetaBuilders.
Diversification Opportunities for Amundi Index and JPM BetaBuilders
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and JPM is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and JPM BetaBuilders China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM BetaBuilders China 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 JPM BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPM BetaBuilders China has no effect on the direction of Amundi Index i.e., Amundi Index and JPM BetaBuilders go up and down completely randomly.
Pair Corralation between Amundi Index and JPM BetaBuilders
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 4.47 times more return on investment than JPM BetaBuilders. However, Amundi Index is 4.47 times more volatile than JPM BetaBuilders China. It trades about 0.03 of its potential returns per unit of risk. JPM BetaBuilders China is currently generating about -0.28 per unit of risk. If you would invest 315,925 in Amundi Index Solutions on August 26, 2024 and sell it today you would earn a total of 4,250 from holding Amundi Index Solutions or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. JPM BetaBuilders China
Performance |
| Timeline |
| Amundi Index Solutions |
| JPM BetaBuilders China |
Amundi Index and JPM BetaBuilders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and JPM BetaBuilders
The main advantage of trading using opposite Amundi Index and JPM BetaBuilders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, JPM BetaBuilders 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 JPM BetaBuilders will offset losses from the drop in JPM BetaBuilders' 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 |
| JPM BetaBuilders vs. Vanguard FTSE Developed | JPM BetaBuilders vs. Leverage Shares 2x | JPM BetaBuilders vs. Amundi Index Solutions | JPM BetaBuilders vs. Amundi Index Solutions |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| 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 |