Correlation Between Amundi Index and International Business

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amundi Index and International Business 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 International Business 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 International Business Machines, you can compare the effects of market volatilities on Amundi Index and International Business 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 International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and International Business.

Diversification Opportunities for Amundi Index and International Business

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between Amundi and International is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Amundi Index i.e., Amundi Index and International Business go up and down completely randomly.

Pair Corralation between Amundi Index and International Business

If you would invest  11,895  in International Business Machines on August 30, 2024 and sell it today you would earn a total of  0.00  from holding International Business Machines or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy63.64%
ValuesDaily Returns

Amundi Index Solutions  vs.  International Business Machine

 Performance 
       Timeline  
Amundi Index Solutions 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amundi Index Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amundi Index is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
International Business 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, International Business is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Amundi Index and International Business Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amundi Index and International Business

The main advantage of trading using opposite Amundi Index and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.
The idea behind Amundi Index Solutions and International Business Machines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Transaction History module to view history of all your transactions and understand their impact on performance.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Fundamental Analysis
View fundamental data based on most recent published financial statements
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital