Correlation Between Amundi Climate and Us Government
Can any of the company-specific risk be diversified away by investing in both Amundi Climate and Us Government 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 Climate and Us Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Climate Transition and Us Government Securities, you can compare the effects of market volatilities on Amundi Climate and Us Government 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 Climate with a short position of Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Climate and Us Government.
Diversification Opportunities for Amundi Climate and Us Government
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amundi and RGVCX is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Climate Transition and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities and Amundi Climate 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 Climate Transition are associated (or correlated) with Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Amundi Climate i.e., Amundi Climate and Us Government go up and down completely randomly.
Pair Corralation between Amundi Climate and Us Government
Assuming the 90 days horizon Amundi Climate Transition is expected to generate 1.12 times more return on investment than Us Government. However, Amundi Climate is 1.12 times more volatile than Us Government Securities. It trades about 0.06 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.04 per unit of risk. If you would invest 943.00 in Amundi Climate Transition on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Amundi Climate Transition or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Amundi Climate Transition vs. Us Government Securities
Performance |
| Timeline |
| Amundi Climate Transition |
| Us Government Securities |
Amundi Climate and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Climate and Us Government
The main advantage of trading using opposite Amundi Climate and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Climate position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Amundi Climate vs. Pioneer Fundamental Growth | Amundi Climate vs. Pioneer Global Equity | Amundi Climate vs. Pioneer Disciplined Value | Amundi Climate vs. Pioneer Disciplined Value |
| Us Government vs. Bond Fund Of | Us Government vs. Intermediate Bond Fund | Us Government vs. American Mutual Fund | Us Government vs. Smallcap World Fund |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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