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 Treasury, 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
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and JPM is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and JPM BetaBuilders Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPM BetaBuilders Treasury 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 Treasury 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 under-perform the JPM BetaBuilders. In addition to that, Amundi Index is 36.03 times more volatile than JPM BetaBuilders Treasury. It trades about -0.15 of its total potential returns per unit of risk. JPM BetaBuilders Treasury is currently generating about 0.5 per unit of volatility. If you would invest 11,260 in JPM BetaBuilders Treasury on September 4, 2024 and sell it today you would earn a total of 38.00 from holding JPM BetaBuilders Treasury or generate 0.34% 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 Treasury
Performance |
| Timeline |
| Amundi Index Solutions |
| JPM BetaBuilders Treasury |
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. WisdomTree Natural Gas | Amundi Index vs. WisdomTree Natural Gas | Amundi Index vs. Leverage Shares 2x | Amundi Index vs. WisdomTree Silver 3x |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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