Correlation Between 21Shares Polkadot and Amundi German
Can any of the company-specific risk be diversified away by investing in both 21Shares Polkadot and Amundi German 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 21Shares Polkadot and Amundi German into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21Shares Polkadot ETP and Amundi German Bund, you can compare the effects of market volatilities on 21Shares Polkadot and Amundi German 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 21Shares Polkadot with a short position of Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Polkadot and Amundi German.
Diversification Opportunities for 21Shares Polkadot and Amundi German
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 21Shares and Amundi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Polkadot ETP and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund and 21Shares Polkadot 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 21Shares Polkadot ETP are associated (or correlated) with Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of 21Shares Polkadot i.e., 21Shares Polkadot and Amundi German go up and down completely randomly.
Pair Corralation between 21Shares Polkadot and Amundi German
Assuming the 90 days trading horizon 21Shares Polkadot ETP is expected to under-perform the Amundi German. In addition to that, 21Shares Polkadot is 11.08 times more volatile than Amundi German Bund. It trades about -0.01 of its total potential returns per unit of risk. Amundi German Bund is currently generating about 0.24 per unit of volatility. If you would invest 4,093 in Amundi German Bund on October 25, 2024 and sell it today you would earn a total of 112.00 from holding Amundi German Bund or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Polkadot ETP vs. Amundi German Bund
Performance |
| Timeline |
| 21Shares Polkadot ETP |
| Amundi German Bund |
21Shares Polkadot and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Polkadot and Amundi German
The main advantage of trading using opposite 21Shares Polkadot and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Polkadot position performs unexpectedly, Amundi German 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 Amundi German will offset losses from the drop in Amundi German's long position.| 21Shares Polkadot vs. 21Shares Crypto Basket | 21Shares Polkadot vs. 21Shares Decentraland ETP | 21Shares Polkadot vs. 21Shares Uniswap ETP | 21Shares Polkadot vs. 21Shares Crypto Mid Cap |
| Amundi German vs. Lyxor UCITS CAC | Amundi German vs. Lyxor UCITS Stoxx | Amundi German vs. Lyxor UCITS Daily | Amundi German vs. Lyxor SP 500 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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