Correlation Between Amundi Index and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Bond, you can compare the effects of market volatilities on Amundi Index and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Invesco Municipal.
Diversification Opportunities for Amundi Index and Invesco Municipal
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amundi and Invesco is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Invesco Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Bond 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Bond has no effect on the direction of Amundi Index i.e., Amundi Index and Invesco Municipal go up and down completely randomly.
Pair Corralation between Amundi Index and Invesco Municipal
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Invesco Municipal. In addition to that, Amundi Index is 1.82 times more volatile than Invesco Municipal Bond. It trades about -0.03 of its total potential returns per unit of risk. Invesco Municipal Bond is currently generating about 0.2 per unit of volatility. If you would invest 246,075 in Invesco Municipal Bond on August 29, 2024 and sell it today you would earn a total of 11,875 from holding Invesco Municipal Bond or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Invesco Municipal Bond
Performance |
| Timeline |
| Amundi Index Solutions |
| Invesco Municipal Bond |
Amundi Index and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Invesco Municipal
The main advantage of trading using opposite Amundi Index and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal'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 |
| Invesco Municipal vs. Leverage Shares 3x | Invesco Municipal vs. GraniteShares 3x Short | Invesco Municipal vs. WisdomTree Natural Gas | Invesco Municipal 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |