Correlation Between Amundi Index and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both Amundi Index and Amundi FTSE 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 Amundi FTSE 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 Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on Amundi Index and Amundi FTSE 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 Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Amundi FTSE.
Diversification Opportunities for Amundi Index and Amundi FTSE
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amundi and Amundi is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of Amundi Index i.e., Amundi Index and Amundi FTSE go up and down completely randomly.
Pair Corralation between Amundi Index and Amundi FTSE
Assuming the 90 days trading horizon Amundi Index is expected to generate 10.7 times less return on investment than Amundi FTSE. But when comparing it to its historical volatility, Amundi Index Solutions is 8.45 times less risky than Amundi FTSE. It trades about 0.15 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,995 in Amundi FTSE EPRANAREIT on October 20, 2024 and sell it today you would earn a total of 134.00 from holding Amundi FTSE EPRANAREIT or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| Amundi Index Solutions |
| Amundi FTSE EPRANAREIT |
Amundi Index and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Amundi FTSE
The main advantage of trading using opposite Amundi Index and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, Amundi FTSE 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 FTSE will offset losses from the drop in Amundi FTSE's long position.| Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Japan | Amundi Index vs. Lyxor UCITS Stoxx | Amundi Index vs. Amundi CAC 40 |
| Amundi FTSE vs. Lyxor UCITS Japan | Amundi FTSE vs. Lyxor UCITS Japan | Amundi FTSE vs. Lyxor UCITS Stoxx | Amundi FTSE vs. Amundi CAC 40 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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