Correlation Between Amundi Index and Invesco Technology
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Invesco Technology 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 Technology 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 Technology SP, you can compare the effects of market volatilities on Amundi Index and Invesco Technology 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 Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Invesco Technology.
Diversification Opportunities for Amundi Index and Invesco Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Invesco is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Invesco Technology SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Technology 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 Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Technology has no effect on the direction of Amundi Index i.e., Amundi Index and Invesco Technology go up and down completely randomly.
Pair Corralation between Amundi Index and Invesco Technology
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Invesco Technology. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.55 times less risky than Invesco Technology. The etf trades about -0.13 of its potential returns per unit of risk. The Invesco Technology SP is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,079,150 in Invesco Technology SP on September 3, 2024 and sell it today you would earn a total of 279,900 from holding Invesco Technology SP or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Invesco Technology SP
Performance |
| Timeline |
| Amundi Index Solutions |
| Invesco Technology |
Amundi Index and Invesco Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Invesco Technology
The main advantage of trading using opposite Amundi Index and Invesco Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Invesco Technology 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 Technology will offset losses from the drop in Invesco Technology'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 Technology vs. Vanguard FTSE Developed | Invesco Technology vs. Leverage Shares 2x | Invesco Technology vs. Amundi Index Solutions | Invesco Technology 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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