Correlation Between Amundi Index and Invesco Health
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Invesco Health 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 Health 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 Health Care, you can compare the effects of market volatilities on Amundi Index and Invesco Health 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 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Invesco Health.
Diversification Opportunities for Amundi Index and Invesco Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amundi and Invesco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Invesco Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Health Care 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 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Health Care has no effect on the direction of Amundi Index i.e., Amundi Index and Invesco Health go up and down completely randomly.
Pair Corralation between Amundi Index and Invesco Health
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 1.04 times more return on investment than Invesco Health. However, Amundi Index is 1.04 times more volatile than Invesco Health Care. It trades about 0.07 of its potential returns per unit of risk. Invesco Health Care is currently generating about -0.12 per unit of risk. If you would invest 318,175 in Amundi Index Solutions on September 18, 2024 and sell it today you would earn a total of 3,200 from holding Amundi Index Solutions or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amundi Index Solutions vs. Invesco Health Care
Performance |
| Timeline |
| Amundi Index Solutions |
| Invesco Health Care |
Amundi Index and Invesco Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Invesco Health
The main advantage of trading using opposite Amundi Index and Invesco Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Invesco Health 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 Health will offset losses from the drop in Invesco Health's long position.| Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 3x | Amundi Index vs. GraniteShares 3x Short | Amundi Index vs. WisdomTree Natural Gas |
| Invesco Health vs. Vanguard FTSE Developed | Invesco Health vs. Leverage Shares 2x | Invesco Health vs. Amundi Index Solutions | Invesco Health 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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