Correlation Between Amundi Index and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Fidelity Sustainable 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 Fidelity Sustainable 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 Fidelity Sustainable EUR, you can compare the effects of market volatilities on Amundi Index and Fidelity Sustainable 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 Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Fidelity Sustainable.
Diversification Opportunities for Amundi Index and Fidelity Sustainable
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amundi and Fidelity is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Fidelity Sustainable EUR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable EUR 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 Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable EUR has no effect on the direction of Amundi Index i.e., Amundi Index and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between Amundi Index and Fidelity Sustainable
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Fidelity Sustainable. In addition to that, Amundi Index is 6.26 times more volatile than Fidelity Sustainable EUR. It trades about 0.0 of its total potential returns per unit of risk. Fidelity Sustainable EUR is currently generating about 0.15 per unit of volatility. If you would invest 552.00 in Fidelity Sustainable EUR on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Fidelity Sustainable EUR or generate 1.81% 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. Fidelity Sustainable EUR
Performance |
| Timeline |
| Amundi Index Solutions |
| Fidelity Sustainable EUR |
Amundi Index and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Fidelity Sustainable
The main advantage of trading using opposite Amundi Index and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable'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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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